In New York City, one of the most expensive rental markets in the U.S., nearly two-thirds (65.6%) of Gen Z renters were considered rent-burdened — the eighth highest rate among major cities nationwide.
Each of New York City’s five boroughs has a higher percentage of rent-burdened Gen Z adults than at least 18 of the 30 largest metro areas in the U.S.
In 2022, at least half of Gen Z renters (ages 18–25) in the 30 largest U.S. metro areas were rent-burdened, spending over 30% of their income on rent. Even in Pittsburgh, the lowest, the rate was 49.8%. San Diego (73.4%), Los Angeles (71.7%), and Sacramento (71%) had the highest burdens, driven by steep rents despite slowing rent growth.
Unlike other major cities, NYC has consistently seen a high share of young adults struggling with rent. Today, about two-thirds of Gen Z renters in the city are rent-burdened—similar to Millennials in NYC a decade ago. Over the past 60 years, layers of restrictive zoning laws have slowed housing development, preventing supply from keeping pace with demand. As a result, even during the post-2008 recovery, high rent burdens among young adults have persisted.
Young adults in New York City are facing an increasingly difficult rental market. While the strong labor market in 2022 and 2023 led to rising wages, it also drove up demand for rental housing. As a result, asking rents for new leases have surged, making it harder for renters to keep housing costs under 30% of their income — even with higher earnings.
Even high-income renters are feeling the pressure. According to StreetEasy research, tech workers, despite earning above-average wages, could afford only one out of every three rentals available last year. With hiring slowing and unemployment rising in the NYC area, young renters are likely to face even more financial strain in the months ahead.
High rent burdens contribute to housing instability and make it harder for individuals to achieve long-term financial goals. For many young adults, the challenge of saving for a down payment has grown, delaying homeownership and the opportunity to build equity.
