It’s a good time to be a Millennial renter—at least in terms of inflation.
According to Redfin, Gen Zers and Millennials who signed a new lease in December saw their cost of goods and services increase 5.6 percent and 6.1 percent, respectively. That’s compared to a 6.5 percent increase for the typical American.
Young adults signing a new lease are benefitting from cooling inflation sooner because rents are increasing slower than the overall cost of housing.
This is based on a Redfin analysis of the cost of goods and services for Gen Zers and Millennials based on spending habits, as measured by the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI). The analysis, which incorporates Redfin’s data on asking-rent prices, weighs each component of inflation–including food, fuel, shelter and other variables–to come up with inflation rates for millennials and Gen Zers who are taking on a new lease. Adult Gen Zers are 18-26 years old, and millennials are 27-42 years old.
This also marks the first time since the start of 2021 Gen Zers overall have a lower personal inflation rate than the U.S. population, a shift that’s largely due to rental price growth slowing.