Nearly half of all U.S. renter households are burdened by rent costs, with Gen Z renters shouldering the heaviest load, a new analysis of the U.S. Census Bureau's 2022 American Community Survey (ACS) by Zillow® and its New York City brand StreetEasy® shows. Across the country, three in five Gen Z renters (ages 18-25) spend more than 30% of income on housing expenses. In 21 of the country's 30 largest metros, that share is even higher. In San Diego, Los Angeles, and Sacramento, for example, nearly three-quarters of Gen Z renters are rent burdened.

"The experience of struggling to pay rent on an entry level salary is familiar to so many of us that it's almost become normalized in our society," said StreetEasy Senior Economist Kenny Lee. "But this is something that should not be normal. Rent burden makes it a struggle for these young adults to afford the other expenses in their lives – things like student loans and medical payments. It's deeply damaging to their ability to save for future life goals, like one day owning a home."

In 17 of the country's 30 largest metros, Millennials in 2012 were more likely to experience rent burden than Gen Z renters in 2022. However, the improvement has been modest. In each of those 30 metros, at least half of Gen Z renters are rent burdened. Austin saw the largest decline in the share of rent burdened young adults through the past decade (-9.5%), while Houston saw the most dramatic increase (11.9%).

"While these large metropolitan areas may be known to have more expensive housing, we have to recognize that they're also where the jobs are," said Zillow Rental Trends Expert Emily McDonald. "For many Gen Z renters, choosing to live in a less expensive city may come at the expense of their career, which is why it's so necessary we find ways to make living in these areas more affordable for young adults."

Zillow and StreetEasy tools

Zillow and StreetEasy have a number of tools that help renters with affordability and access.

The upfront costs of finding a place to rent can add up, with Zillow research showing those costs tend to be higher for renters of color. In New York City, upfront costs average almost $10,500, with broker fees often the largest expense. Lowering upfront rental costs will give all New Yorkers expanded choices in the rental market, which is one of the reasons Zillow and StreetEasy are advocating for broker fee reform.

For all Zillow rental listings, Zillow includes a costs & fees breakdown to help renters get a better idea of the affordability picture by highlighting certain one-time costs, such as application fees and security deposits, as well as recurring costs, such as parking. While the typical renter nationally pays $60 in application fees across all the rentals they apply for, Zillow's rental application allows renters to apply to an unlimited number of participating rentals on Zillow for 30 days for a flat fee of $35.

Zillow rental listings also include rooms for rent — individual rooms in units or homes — bringing more affordable rentals online. Renters using Zillow can include "room" listings in their searches alongside traditional "entire place" options.