A common complaint about millennials and their spending habits is that many tend to live beyond their means, focusing on spending versus saving and having an aptitude towards renting instead of purchasing a property.
But as real estate in major cities becomes more and more unaffordable, the gap between the median price of a one-bedroom apartment and the necessary salary in order to afford one is growing larger — in some cities, even too large to fathom.
A new study by FilterBuy examined major U.S. metros and the renter wage gap among millennial renters, who constitute the largest portion of renters in the country. Millennials in this study are those currently in the age range of 26-41.
The study examined in each metro the median millennial renter salary, the median price of a one-bedroom apartment, and the annual salary a millennial would need to make to afford that 1-bedroom, and then determined the millennial renter wage gap.
The results were predictably frightening, especially for millennials hoping to make moves to California or Florida.
Los Angeles-Long Beach-Anaheim, CA had the largest millennial renter wage gap coming in at -49.5%, where a salary of $72,560 would be needed to afford an apartment at the median price of $1,814. Of renters in the area, 36% are millennials.
Miami-Fort Lauderdale-West Palm Beach, FL came in second, with a -40% wage gap where the median millennial renter salary is $31,414, yet the salary needed to afford a median-priced one-bedroom is $52,320.
San Diego-Carlsbad, CA came in third, followed by Orlando-Kissimmee-Sanford, FL, San Francisco-Oakland-Hayward, and New York-Newark-Jersey City, NY-NJ-PA round out the top six.
Though it might seem unsurprising that the NYC metro didn’t crack the top five, it’s to be noted that the median salary of a millennial worker in the area is higher than many others on the list.
The metro with the highest median price for a one-bedroom was in the No. 7 ranked San Jose-Sunnyvale-Santa Clara, CA where it’ll cost you a whopping $2,663 for a humble abode.