Cost of Living 2023: How Much Every Generation Pays in Rent

5 min Read

September 6, 2023

a young couple view a property guided by an estate agent.

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America is bent on rent, with around 35% of the U.S. population renting their housing as of 2021. To better understand the situation, GOBankingRates asked Americans about how much they spend on rent, and in what age range they fall.

Here’s what we found out, in terms of a breakdown of who’s paying what monthly:

Those paying $500 and under: 14.85%
Those paying between $501 and $1,000: 23.10%
Those paying between $1,001 and $1,500: 9.81%
Those paying between $1,501 and $2,000: 8.07%
Those paying between $2,001 and $3,000: 5.96%
Those paying between $3,000 and $4,000: 2.65%
Those paying $4,000+: 1.46%
Those not renting: $29.06%

What’s perhaps most interesting about this data is that such a sizable portion of renters (nearly 15%) are paying $500 or less. That’s far below the national average of $1,702 — which gets you a 897 sq. ft. apartment — according to RentCafe. Additionally, 25% of Americans are paying between $501 and $1,000 on rent, also impressive given the much higher national average. According to these findings, it looks like only 8.07% of Americans are in that $1,702 spot that the average American is paying in rent.

Let’s look now at how these numbers stack in terms of age groups. Which generation is shelling out the most and the least?

Paying $500 and Under

Those aged 18 to 24: 15.73%
Those aged 25 to 34: 14.83%
Those aged 35 to 54: 34.81%
Those aged 54 to 65: 12.14%
Those aged 65 and over: 9.86%

People between the ages of 34 and 54 are those most typically paying $500 and under in rent. Surprisingly, only 9.86% of people in their golden years, who are likely living on very fixed income, have rent this low.

Paying Between $501 and $1,000

Those aged 18 to 24: 23.59%
Those aged 25 to 34: 14.83%
Those aged 35 to 54: 34.81%
Those aged 35 to 54: 50.54%
Those aged 54 to 65: 24.29%
Those aged 65 and over: 17.6%

By far, it is those aged 35 to 54 who are mostly paying between $501 and $1,000, which is still well below the national average.

Make Your Money Work for You

Paying Between $1,001 and $1,500

Those aged 18 to 24: 18.54%
Those aged 25 to 34: 16.95%
Those aged 35 to 54: 28.83%
Those aged 54 to 65: 11.86%
Those aged 65 and over: 11.98%

It’s fairly across the board (though, once again, heaviest in the middle) for those paying between $1,001 and $1,500, which is still under the national average.

Paying Between $1,501 and $2,000

Those aged 18 to 24: 8.42%
Those aged 25 to 34: 9.74%
Those aged 35 to 54: 13.44%
Those aged 54 to 65: 10%
Those aged 65 and over: 6.34%

Though it’s lower percentages, this one is also across the board, with people aged 65 and over the least likely to fall into this rent payment category.

Paying Between $2,001 and $3,000

Those aged 18 to 24: 9.56%
Those aged 25 to 34: 12.71%
Those aged 35 to 54: 9.92%
Those aged 54 to 65: 2.14%
Those aged 65 and over: 1.4%

You’re well into the high end of rents once you go above $2,000 a month. As such, it’s unsurprising that so few Americans are in this category, but intriguing to note that Gen Zers and younger millennials are most likely to pay this amount.

Paying Between $3,000 and $4,000

Those aged 18 to 24: 4.5%
Those aged 25 to 34: 5.08%
Those aged 35 to 54: 3.99%
Those aged 54 to 65: 0%
Those aged 65 and up: 0%

Monthly rent between $3,000 and $4,000 is quite high, so it’s no wonder that no boomers (and very few of younger generations) are paying within this range.

Paying $4,000+

Those aged 18 to 24: 2.25%
Those aged 25 to 34: 2.12%
Those aged 35 to 54: 2.51%
Those aged 54 to 65: 1.43%
Those aged 65 and up: 0%

If you can afford rent upwards of $4,000 a month, you are in the near microscopic minority, based on this survey’s findings.

4 Ways To Get Cheaper Rent

This all prompts the question: If you’re not already saving substantially on rent, how can you? Here are some tips.

Research Your Market

When it comes to saving money, you’ll always want to do your homework — and rent is no exception. Know what apartments go for in the area you live in or would like to live in. If you see high vacancy rates, pocket that info because it may be useful in negotiating a lower rent with a landlord.

Make Your Money Work for You

Start a Lease in Winter

Like with homebuying, renting momentum works seasonally and tends to die down some in the winter. This is an ideal time to sign a lease if you’re looking to beat the crowds.

Ask About Discounts

It may feel strange to do, but you should ask your landlord about any discounts on rent if you’re planning on staying long-term, which most landlords appreciate (provided you’re an ideal tenant).

Get a Roommate

Perhaps the most popular way to save on rent is to split it with another responsible person. If you want a bigger place than you can afford or are living on a very tight budget, look into sharing your space with someone you can trust who will go in on the lease with you.

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