The rent-to-income ratio is 89% higher for Millennials than it was for Baby Boomers at the same age in 1985. The average Baby Boomer in their 30s earned $48,113 and paid $359 for an apartment in 1985, a 9% rent-to-income ratio, Real Estate Witch stated. The average Millennial in their 30s earned $64,994 in 2020 and paid $894 for a rental unit, a 17% ratio.
- From 1985 to 2020, rent prices increased 149%, while income grew just 35%. Rent prices have increased about 4x faster than income during that time period.
- If rent prices grew at the same rate as income since 2000, the median rent in 2020 would cost about 34% less — $586 per month instead of $894.
- From 1985 to 2020, the median U.S. rent-to-income ratio nearly doubled from 9% to 17%.
- The rent-to-income ratio is 89% higher for Millennials than it was for Baby Boomers at the same age in 1985. The average Baby Boomer in their 30s earned $48,113 and paid $359 for an apartment in 1985, a 9% rent-to-income ratio, Real Estate Witch stated. The average Millennial in their 30s earned $64,994 in 2020 and paid $894 for a rental unit, a 17% ratio.
- Since 2000, median rent prices have outpaced inflation by 29%.
- Median rent prices grew 90%, while inflation grew 70%.
- From 2000 to 2022, median home prices increased 156% nationwide, while median rent prices increased 90%.
https://www.realestatewitch.com/rent...me-ratio-2022/