Millennials and Gen Z renters are facing an even greater burden when it comes to living expenses.
According to a new Redfin report, the cost of goods and services increased 11.6% in July compared to a year ago for millennials that took on a new rental lease.
For Generation Z, the inflation rate for those signing a new lease was 11.3%, according to the data.
INTEREST RATE VOLATILITY, INFLATION CRIPPLES HOUSING MARKET, BUT STABILITY WILL HELP ENTIRE ECONOMY REDFIN CEO
Both of those figures are "substantially higher" than the inflation rate of 8.5% for the U.S. population overall.
Soaring rental costs are largely responsible for driving the increases, according to the real estate brokerage. Even though rental price growth has slowed since 2021, asking rents are still up about 25% compared to pre-pandemic times.
In July, asking rents in jumped 13.5% compared to a year ago.