As Gen Z begins to work towards becoming homeowners, a recent housing cost analysis conducted by RentCafe revealed that Gen Z adults living in San Antonio are expected to spend a total of $128,673 on rent by the time they reach the age of 30. With Gen Z set to become the most educated generation yet, as well as the highest compensated, many have begun to compare the costs of living and spending patterns to their predecessors, the Millennial generation.
RentCafe’s study reports that by the time members of Gen Z living in San Antonio reach the age of 30, they will have earned $458,000. Although the cities of Austin and Dallas have higher earning wages, the members of Gen Z who made their homes in San Antonio will not have to worry about high rent prices. Reporting the lowest rent prices of the major cities in the Texas Triangle, renters in San Antonio are expected to pay $129,000 throughout their 20s. When broken down, this sum represents almost one-third of the total take-home pay for Gen Z adults living in San Antonio, just under $1,200 a month on average.
As Gen Z reaches their mid-20s, recent reports highlight the expenses that come with moving away from home or beginning to live on their own. An estimated 84% of Gen Z do not have the financial means to purchase a house. As a result, this generation seemingly faces a unique perspective on renting, housing affordability and homeownership compared to previous generations, specifically Millennials.
Millennials did not have high-cost rent during the same period. Before the age of 30, Millennials, on average, spent $112,500, making their monthly rent just over $1,000. Individuals looking to find homeownership at the age of 22, excluding down payments, will have spent $182,000 — almost $1,900 monthly — until they reach 30.
In comparison, it was $167,000 for Millennials, revealing a $15,000 difference in homeownership prices between the generations adjusted to the 2023 value of the U.S. dollar. This rings true despite the slight decrease in income for Gen Z during the same period. Millennials reportedly had $467,300 in earnings before age 30, a difference of over $9,000. These totals represent a large portion of the total take-home pay, 28% and 24% for Gen Z and Millennial renters, respectively. For homeownership, those numbers come out to 40% and 36% of total income.
Additionally, in an article by KENS5, Texas was at the top of the list of places young people are looking to settle down. The U.S. Census Bureau’s American Community Survey reported that Texas had more young movers than any other state. Florida came in third place with 41,000, California was just slightly higher with 44,000, but Texas took first with an estimated 76,000 Gen Z moving here in 2022. Close to 19,000 Gen Z individuals found their way to the Alamo City, placing San Antonio first over Houston with 11,000.
This rising population has driven the need for more infrastructure, notably along I-35 and Loop 1604. The Texas Department of Transportation Executive Director Marc Williams spoke on the construction at a summit held in San Marcos and stated, “A big part of what moves up and down I-35 is commerce.”
Director Williams understands the need to accommodate the rapidly growing metropolitan areas, ending with, “The work will never conclude on Interstate 35 between Austin and San Antonio — I can say that pretty definitively.”
As Gen Z enters the workforce and progresses towards becoming homeowners, San Antonio has proven to be one of the fastest-growing cities in the state and nation.
For more information, go to the RentCafe website to stay updated on the growing costs of living and spending in San Antonio.
