Young renters, primarily millennials (ages 26-41) and Generation Z (ages 18-25), stand to be hit hardest by the stormy economic climate. Student loan debt, smaller incomes, rising gas and grocery prices, and skyrocketing rent all contribute to young renters’ financial challenges. In a recent survey by Grubb Properties, 51% of the 1,000 renters surveyed reported they had experienced a rent hike in the past year, with an average increase of 30%. Fewer than 7% of the participants claimed they were able to cover the increase without making any changes to their lifestyle. Of significance for multifamily investors, 34% of the survey participants planned to search for a new place to live. According to RealPage, renter incomes in class A properties have moved in tandem with rent increases over the past year. However, if we see an expansion in the unemployment rate in 2023, there will likely be a segment of Class A renters that turn to Class B communities that offer a better economic value in a volatile economy. As of the third quarter, Class B properties, on average, offered a monthly discount of $477 compared to Class A properties, or a savings of $5,724 annually.