John Campbell, accounting and finance professor in the Terry College of Business, spoke with Marketplace about “rent burdened” people between the ages of 18 and 25.
According to researchers, over half of Gen Z spend at least 30% of their pre-tax income on housing with the under supply of rental housing as the primary reason.
There are two main ways to increase wealth, Campbell said. “You’re either a homeowner or you have money in the stock market. And if you’re at this level of 18 to 25, you’re neither of those things.”
Unfortunately, housing prices have continued to rise since 2022.
“I would guess if you went out to 24 it wouldn’t be better. It’d probably be worse,” he said.
Paying a lot in rent prevents many people from saving money. The longer young adults remain rent-burdened, the wider the wealth gap becomes. Experts claim the best way to fix this issue is by increasing the supply of starter homes.