Get All Access for $5/mo

These Are the 2 States to Avoid If You're A Millennial Renter, According to a New Report A new study by FilterBuy examined the renter wage gap for millennials in the largest U.S. metro areas -- and two states stood out.

By Emily Rella

Getty Images
Getty Images

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.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Solutions

Increase Productivity with This Microsoft 365 Subscription, Now $25 Off

It can make the entrepreneur life a lot easier.

Business News

Apple Pay Later Is Ending. Here's What's Taking Its Place.

The program was available for less than a year.


This Artist Answered a Businessman's 'Powerful' Question — Then His Work Became 'the Poster Child for Juneteenth': 'Your Network Really Becomes Your Net Worth'

Reginald Adams was the executive director of a Houston-based art museum for more than a decade before he decided to launch his own public art and design firm.


Harvard Business School Professor Says 65% of Startups Fail for One Reason. Here's How to Avoid It.

Team alignment isn't nice to have -- it's critical for running a successful business.

Business News

Here's What Companies Are Open and Closed on Juneteenth 2024

Since it became a holiday in 2021, Juneteenth has been recognized by some major corporations as a paid day off.

Growing a Business

I Hit $100 Million in Annual Revenue by Being More Transparent — Here Are the 3 Strategies That Helped Me Succeed

Three road-tested ways to be more transparent and build relationships that can transform your business — without leaving you feeling nightmarishly over-exposed.