Gen Z moves in with parents, as San Diego housing deemed out of reach
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Owning a home feels unattainable to many Gen Zers, who are increasingly living with their parents to save money, the New York Times reported.
Why it matters: Young adults are finding it unrealistic to spend less than 30% of their monthly income on housing, the rule of thumb that's guided housing decisions for generations.
- Nationwide, a median-income household would need to spend over 30% of their income for an average-priced apartment, per a report from Moody's Analytics.
What's happening: Nikayla Jefferson, a 26-year-old graduate student in San Diego, recently moved into her parents' home because she "can't afford to do anything else right now," she told the NYT.
- About one-third of her generation, typically defined as people born between the late 1990s and early 2010s, is doing the same, according to a new study.
What she's saying: Moving out of state could help Jefferson pursue a career in writing, but in California, "there's absolutely no way."
- "There's no way that I believe that I could start out as like a young writer and have any kind of chance of being able to pay rent or buy groceries."
Yes, but: In San Diego, median rent prices have actually dropped since last summer.
- Still, they're about $1,300 higher than the national median, according to Zillow rental data.
By the numbers:
- $2,100 for studio properties, down $195 from August 2022
- $2,595 for one-bedroom properties, down $145
- $3,436 for two-bedroom properties, down $64
The big picture: Surging rent prices over the past two years have made life increasingly unaffordable for many Americans, despite the rate of rent growth slowing down.
- There's a shortage of affordable rental units as more newly constructed, high-end apartment buildings come onto the market.
Reality check: Jefferson doesn't want to leave her home state of California, but "there is this kind of romantic longing for the Midwest," and the hope for affordable rent and "maybe one day in our dreams, buy a house."