Most Tampa Bay young renters spend 30% of their income on rent
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Illustration: Natalie Peeples/Axios
The high cost of renting in Tampa Bay plus high mortgage rates are pushing ownership further from reach for young people.
Why it matters: Renting isn't necessarily an affordable alternative.
- Spending 30% of your income on rent is "the new normal," according to economists at Moody's Analytics.
Driving the news: One in three Gen Zers (34%) surveyed by Freddie Mac say owning a home feels impossible in their lifetime, up from 27% in 2019.
- Saving for a down payment is the biggest obstacle, they say: It's one reason the typical first-time homebuyer last year was a record-high 36 years old, per the National Association of Realtors.
- Of note: The shares are higher for Black (35%) and Hispanic (50%) respondents.
Zoom in: Gen Z-er Alina Sharkey has rented in St. Pete since March 2021, and her rent has gone up 26% since then.
- "My salary did not match the increase of rent so I had to find another way to make money," she says. She got a new certification from her job that allowed her to start making commissions.
- She spends 33% of her income on rent, and says she would like to buy but can't afford it — thanks to high home prices and mortgage rates.
Most of Tampa Bay's youngest renters are spending at least 30% of their income on rent, the latest U.S. census data show.
- In all of the 100 biggest U.S. metros, over a third of 15- to 24-year-old householders who rent spend 30% or more of their income on housing, Axios' Simran Parwani reports.
What's happening: Across the U.S., pinched young people are fanning out from big cities, returning to their childhood bedrooms or moving in with partners.
- Fannie Mae researchers found 30% of young workers are willing to live farther away from the office for more inexpensive housing.
- Nearly a third of Gen Z adults say they're living at home long-term, The New York Times reports.
Zoom out: America's housing shortage has helped hike the cost of both buying and renting.
Yes, but: The vast majority of young renters are renting for lifestyle reasons, preferring the flexibility to move, RealPage chief economist Jay Parsons tells Axios.