Five U.S. cities where Gen Z can more easily afford rent than millennials at the same age.

Gen Z renters appear to have slightly more affordable housing options than millennials at the same age.

In 2011, the percentage of millennials who were rent-burdened, meaning they spent more than a third of their income on housing, reached a high of 62%, according to a recent Zillow study.

Although rents are still high, a slight decrease in rent burden has been observed among Gen Z renters, with 58% of them being rent-burdened in 2022, compared to 60% of millennials in 2012, according to Zillow.

The affordability of rent for Gen Z in major U.S. cities is easier compared to millennials at the same age, according to Zillow's analysis. Here are the top five cities where this is the case.

1. Austin, Texas

• Gen Z median gross annual income in Austin (2022): $45,000
• Gen Z median monthly gross rent in Austin (2022): $1,415
• Percentage of rent-burdened millennials in Austin (2012): 69%
• Percentage of rent-burdened Gen Zers in Austin (2022): 60%

2. Phoenix

• Gen Z median gross annual income in Phoenix (2022): $59,190
• Gen Z median monthly gross rent in Phoenix (2022): $1,623
• Percentage of rent-burdened millennials in Phoenix (2012): 64%
• Percentage of rent-burdened Gen Zers in Phoenix (2022): 55%

3. St. Louis

• The median annual income for Gen Z in St. Louis (2022) is $38,431.
• The median monthly gross rent for Gen Z in St. Louis (2022) is $1,020.
• Percentage of rent-burdened millennials in St. Louis (2012): 58%
• Percentage of rent-burdened Gen Zers in St. Louis (2022): 50%

4. Orlando, Florida

• Gen Z median gross annual income in Orlando (2022): $46,848
• Gen Z median monthly gross rent in Orlando (2022): $1,666
• Percentage of rent-burdened millennials in Orlando (2012): 75%
• Percentage of rent-burdened Gen Zers in Orlando (2022): 69%

5. Pittsburgh

• Gen Z median gross annual income in Pittsburgh (2022): $40,000
• Gen Z median monthly gross rent in Pittsburgh (2022): $1,080
• Percentage of rent-burdened millennials in Pittsburgh (2012): 55%
• Percentage of rent-burdened Gen Zers in Pittsburgh (2022): 50%

Renters seeking to increase their take-home pay are increasingly drawn to cities like Austin and Phoenix, where housing prices are lower due to new construction helping to meet demand.

According to Zillow economist Kenny Lee, Austin experienced one of the most significant growths in multifamily apartment construction during the recent years.

To find affordable housing in a city you're interested in, look for new construction projects, as they may signal the availability of more affordable housing options in the rental market.

To avoid any surprises when budgeting for housing, Gen Z renters should keep housing costs under 30% of their gross income, Lee advises. Additionally, Lee recommends asking questions of leasing agents and real estate agents to ensure clarity about upfront and recurring costs.

According to Lee, application fees, security deposits, pet fees, and parking fees are some of the costs that may be incurred. It is crucial to comprehend these costs fully as prices may vary across cities and neighborhoods.

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