Rental Prices Increase Nationwide- Millennials Forced To Pay More For Housing

This week, Millennial finances appeared in the headlines yet again.  The latest topic is focused on the greatest expense for many young Americans; rental prices.  Across the country, rental prices are poised to increase significantly in 2016.

According to MarketWatchSome 88% of property managers raised their rent in the last 12 months and 68% predict that rental rates will continue to rise in the next year by an average of 8%, according to a survey of more than 500 of Rent.com’s property management customers, which the site says represents thousands of rental properties and hundreds of thousands of rental units. That’s nearly three times the wage increase that most employees can expect this year.

So, Millennials and Generation X’ers who are renting or looking to rent can look forward to having their meager wage increases swallowed whole by rising rental prices.  Coupled with the affects of Social Security and ObamaCare, and student loan payments this trend further financially hamstrings younger Americans.

You’d think that Millennials would say “enough is enough.”  Not quite.  In fact, they seem to be willing and eager to take on more punishment.

Rent.com conducted a survey of 1,000 millennial renters to find out how they are planning their next move, finding more than half (57%) rank affordability as the most important factor when choosing an apartment. Yet when asked, 55% said they are willing to spend up to $150 more per month in order to stay in an apartment they love. Nearly one in four respondents (24%) are willing to shell out an additional $400 a month, just to keep their pad.

Where the hell are this money that they are willing to spend?  Because it sure isn’t coming from increased wages.

But can millennials actually afford to be spending as much money?

Going back the rent.com, it seems that the millennial heart and head are at odds.

Despite their desire for affordable apartments above all else, 22% of millennials are spending up to 40% of their annual income on rent.

In order to afford living, more than one in three millennial renters (39%) reported getting some financial help, with 24% turning to their parents for additional support, 9% receiving financial support from the government and 6% depending on the kindness of others.

So, nearly half of Millennial renters are receiving some type of assistance in order to maintain their current living situation.  What happens when the prices increase another 7%?  Will the ‘kindness of others’ continue?  How can young Americans simply say that they are willing to spend more when the stark reality of their economic condition betrays their uncalled for optimism?

Rental prices take up almost 40% of Millennial budgets.  Payroll contributions to Social Security accounts for 6.2% of pre-tax expenses.  Add in skyrocketing healthcare costs and of course student loan debt and, combined, they will account for far more than half of their income!

Millennials still think that money will materialize into their lives to make this happen.  Yet, as the previous article stated, their “heart and head are at odds.”   This is the same generation that believe that they will be able to cover the entirety of their children’s college education.  But the reality is that most of them are in no financial position to own a home.  Millions of them are still stuck living with their parents.   Many of them who want to own in a trendy area are forced to make a home in a microscopic apartment.

Come on, Millennials, when will you say “Enough is Enough.”  Why aren’t you, all of you, mad as hell yet about paying for Social Security when you all know that it will never be there for you; and at the fact that political and economic trends of the last few decades have ripped away from your lives the opportunity for personal financial advancement that previous generations enjoyed.

Things will continue to get worse until Millennials and Generation X’ers get angry and take action.

-R.J. Renza, Jr.

Please take a moment and sign the National Petition to Opt-Out of Social Security. The more signatures we gather, the more pressure we place on Congress and our political leaders.

August marked the release of my first e-book “How Are You Not Angry Yet: How Social Security is Destroying the Futures, Finances and Hopes of Generations X,Y and Z and How We Can Put and End to it,” which takes on Social Security from the perspective of young America in a visceral and humorous way.  “Angry Yet” breaks down the complex topic of Social Security into a way that most Americans can easily understand and find entertaining and is available here.

I was recently mentioned by my favorite economic blogger Michael Shedlock in his post “Question To Millennials: Why Are You Not Mad As Hell Yet?”

I also appeared on The Debt Dialogues, the weekly podcast of “RooseveltCare” author Don Watkins:

Check out my video of how I celebrated Social Security’s 80th Birthday and What Social Security Does To Kids.

You can also follow me on Twitter at https://twitter.com/takebackyoursix

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