Inflation is hitting millennial, Gen Z renters harder than the average American

Rent price hikes are beginning to outpace home price increases as the U.S. housing market stagnates after two years of runaway demand, and that, combined with inflation, is hitting some renters harder than others.

Younger renters including millennials and Generation Z are seeing higher inflation rates than the average American, largely due to soaring rental costs, according to a new Redfin analysis published Thursday.

Impact to young Americans: The analysis found millennials who took on a new rental lease in July saw their overall cost of goods and services increase 11.6% year over year, substantially higher than 8.5% for the U.S. population as a whole. The personal inflation rate for Gen Z renters taking on a new lease came in at 11.3%, nearly as high.