The Baby Boomers are the result of an America looking to bring new life into a world that had lost so many. Generation X was born when America was fighting for equality and change during the Civil Rights Movement. And millenials came at the turn of the century when modern technology was taking its baby steps along with them.
“Generation Z are children of the war and uncertainty and recession and pandemic of the 2000s. They have been indelibly shaped by an era of profound change and perpetual anxiety,” according to Forbes.
As each generation enters adulthood, their take on the American Dream has been modified by the state of the country at that time. For Gen Z, owning property doesn’t seem very affordable or attainable.
Research by RentCafe compared how much Gen Zers will spend on housing to how much millenials had paid by the age of 30 in 200 metro areas across the U.S.:
“When it comes to housing costs, Gen Z will be spending (on average) $145,000 on rent by their 30th birthday, while Millennials spent $127,000 during the same stage of life (14% more). Notably, Gen Z’s renting costs account for 27% of their income from ages 22 to 29 (which is the same percentage as it was for Millennials) because Gen Z’s wages are higher today.”
In Salt Lake City, the younger generation is set to spend a little more than $150k on rent by the time they reach 30. Still, for those who do purchase a home, they are looking at about $202,585 in costs — that includes mortgage, other fees and insurance but not the down payment, Esther Urmosi, a communication specialist for RentCafe, told Deseret News in an email.
Saving up in Salt Lake
When the daughter’s family, for whom she was a caretaker, offered to give her rent-free housing, Hallie Wilson, 24, couldn’t pass up the opportunity.
“They just own the house next to them and wanted me to save,” Wilson told the Deseret News. “They wanted to give me the opportunity to save for when I want to move out of the state. And since I’m in college, I mean, it’s a perfect situation.”
Wilson explained that before the offer, she lived in Sugar House and paid about $700, which is pretty affordable for Salt Lake. Still, due to the high cost of living, she was barely getting by working 60-hour weeks with two jobs and in her last semester of college.
“A lot of my friends have to pay like $1,200 for a nice place, even with roommates, which is crazy,” she added.
As college costs and student debt reach unprecedented levels, coupled with housing prices outpacing wage increases, the American Dream of owning property is increasingly out of reach for young people.
“For a U.S. homebuyer to spend no more than 30% of their income on monthly payments, they would’ve had to have made at least $109,868 in 2023,” according to Mansion Global. “That’s also a record high, up 8.5% from 2022.”
When asked if she would own property in the future, Wilson stressed that other expenses take precedence, “I don’t know what I’ll be making financially outside of college. But still, considering I want to go to med school, how am I supposed to afford both?
“Who doesn’t want to buy a house? Who doesn’t want a place they can call their own?”