Did you know that Gen Zers are outspending Millennials when it comes to rent costs by age 30?

In Philadelphia, Hapco Philadelphia’s partner at RentCafe.com have found that Zoomers are projected to shell out more than $157,000 on rent by age 30  $18,500 more than their avocado-loving predecessors. For thambitious Philly Zoomers eyeing homeownership, the transition from renter to owner status demands an extra $36,000, according to our latest report.

RentCafe’s latest study delves into historical housing costs and spending habits across nearly 200 metro areas in the U.S., usinIPUMS data. Specifically, they examined how much Gen Z and Millennials allocate toward rent and homeownership before hitting the big 3-0.

Here’s how much an average Gen Zer is expected to pay for renting and owning in different Pennsylvania metros before turning 30:

Have an extra 5 minutes? Check out the highlights on Philly Zoomers:

  • In Philadelphia, Gen Z is expected to fork out $157,191 on rent by age 30  enough to buy a fancy car and the highest amount among the Pennsylvania metros analyzed. As for homeownership, the total cost for Gen Zers in Philadelphia amounts to approximately $192,994 by age 30 (mortgage, fees, and insurance included, but down payment excluded).
  • By contrast, Millennials spent less on rent ($137,000), but more on homeownership ($202,500) at the same age. 
  • Additionally, Philadelphia’s Zoomers are anticipated to rake in slightly higher incomes before hitting 30 compared to their Millennial predecessors  $550,860 versus Millennials’ $542,922.

What’s your take on Generation Z’s housing costs in Philadelphia? Hapco Philadelphia and RentCafe.com would love to hear your input!

About the methodology: 

Using the most recent IPUMS data, the RentCafe.com research team analyzed the rent and homeownership costs and incomes across 197 metros in the U.S. for an eight-year period for each generation (from 22 to 29 years old). The study looked at the average amount that each generation spent or would spend on rent or owning and the average income they earned during that same period at the household level. Costs and income for each year in the sample have been adjusted to the 2023 value of the U.S. dollar. Millennials are defined as individuals born between 1981 and 1996, and Gen Z individuals were born between 1994 and 2000.