It’s not an easy time to be young and low-paid in the Bay Area.
But most millennials are still making their own way — only about 1 in 10 in the region get help from their parents to pay rent, according to a new study by Apartment List.
Young people in the Bay Area face high costs of living — rental prices remain among the steepest in the nation, and you can easily spend $5 on a cup of coffee and more for avocado toast — but are more financially independent than peers in other metro areas.
Roughly 12 percent of respondents in San Francisco and San Jose said they received help from their parents, slightly greater than the national average of 11 percent. Young renters getting the biggest boost from family live in Denver and Phoenix, where about 15 percent still collecting a housing allowances from mom or dad.
Housing costs were generally lower in earlier generations. Since 2000, home prices have risen 75 percent and rents have climbed 61 percent, while income for people under 35 has grown 31 percent.
“Housing costs have become a much larger part of people’s income,” said Sydney Bennet, a researcher at Apartment List.
The Bay Area remains the priciest in the region. Average rent for a one-bedroom in San Francisco in March is $3,400, while a similar unit in San Jose costs $2,450, according to a survey by real estate site Zumper. Only New York City, where a one-bedroom goes for $2,900 a month, approaches local rent prices.
Apartment List surveyed 13,000 users across the country for the report. About 6,000 respondents were millennials out of school and renting.
When it comes time to leap into home ownership, young folks expect a little more help from family. About 1 in 5 renters surveyed in the Bay Area hope mom and dad will pitch in for a down payment.
With the average Silicon Valley home going for seven-figures in many cities, it’s a stretch for buyers of all ages.
What do millennials expect?
Estimated share of millennial renters, students and non-students, saying they get help from their parents to pay rent, according to a survey by Apartment List.
New York 13.6%
Los Angeles 12.0%
San Francisco San Jose 11.6%
National Average 10.8%
Washington, DC 7.1%
Source: Apartment List online survey of renters in major metropolitan areas.