Millennials Will Spend Over $200,000 On Rent — Gen Z Will Spend More

(Photo courtesy of Adelina Martin via Flickr.com)

The average Millennial will spend over $200,000 American (~$263,000 Canadian) on rent before buying a home. But the average Gen Z will spend even more.

Who’s Gen Z? And … that much in rent? We’ll explain. And … yes, at least.

Generation Z is one of many named allotted to the demographic cohort following Millennials (Generation Y). While there is some discrepancy on the exact birth years, Gen Z typically falls into the mid-1990s to 2010 timeline.

READ: Why More Millennials Live At Home — And It’s Not Because They’re Lazy

Early research on this new demo indicates they want to live the traditional dream and one day own a home.

A new study by HotPads estimates, Generation Z will spend about 226,000 (USD) on rent before they can own a home. This will be more than any other generation.

Average rental rates for a one-bedroom apartment in Toronto — one of the most expensive rental and housing markets in the world — keep rising and are now hovering around $2080/month.

READ: How Long It Will Take Millennials To Save A Down Payment For A Home

For instance, Millennials are expected to spend 202,000 (USD) renting before their first home purchase.

And if you adjust inflation, baby boomers spent 148,900 (USD) renting prior to buying getting their feet wet in the housing market.

But times are changing more towards times of yore.

READ: Millennials Choosing Cryptocurrency Over Real Estate

While Gen Z will likely have to dig deeper into their bank accounts to rent, they will be quicker to purchase homes than Millennials.

HotPads, U.S. government data, and research indicate that while baby boomers rented for about 10 years before half that generation became homeowners, Millennials will rent for 12 years en route to homeownership, and Generation Z will rent for 11 years.

READ: Toronto Vs. The Top Rental Real Estate Markets In The World
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