Photo: Roshan Vyas
Nearly half of the Bay Area’s residents aged 51 to 69 are rent burdened, according to apartment search site ADOBO’s latest report. Rent burdened is a term for anyone who spends over 30 percent of their income on rent each month.
Coming in second are the Gen Xers (aged 35 to 50) with 42.7 percent, while Millennials (aged 18 to 34) pull up the rear with 42 percent.
ADOBO gathered data from the US Census Bureau 2015 ACS 1-year Public Use Microdata Sample and analyzed the 100 most populous Metropolitan Statistical Areas.
On a national level, the median gross rent for Millennials was $980 per month, but the median household income amounted to only $39,900. This means that 29.5 percent of the typical Millennial’s income goes toward housing.
Obviously, this impacts their ability to focus at work, a place where consistent high performance and a lack of distractions could help alleviate this problem. A report from Bank of America Merrill Lynch Workplace Benefits indicates Millennials spend about four hours a week stressing about finances while on the job. After all, they’re earning about 20 percent less than the previous generation.
While Millennials are usually the headline-grabbers, the growing number of Baby Boomers who face rent burden is also concerning. The SF Examiner recently pointed out that “more than 25 percent of San Francisco’s population are seniors or adults with disabilities, and more than two out of every five live alone without sufficient support at home.”
Although they don’t provide solutions to these problems, ADOBO’s report raises a red flag over housing affordability on a national and regional level, and across all generations.