America’s cost-burdened renters
Though the recent 0.1 percent dip in national rents may seem like a reason for optimism, it turns out things are pretty bad for today’s renters. In fact, according to new data, nearly half of all U.S. renters are cost-burdened, spending more than 30 percent of their monthly income on rent.Verify your new rate (Jul 12th, 2020)
Bogged down by housing costs
According to data from Apartment List, 49.5 percent of all American renters are burdened by their housing costs. That’s down slightly from last year when 49.7 percent of renters were cost-burdened.
But the small decrease isn’t a silver lining. According to Chris Salvati, Apartment List’s housing economist, the change is simply a result of who’s renting, not what renting costs.
“Much of this decrease in the cost burden rate is attributable to an influx of high-income households to the rental market,” Salvati said.
In fact, the number of actual cost-burdened households is up significantly. A whopping 3.1 million more renters are burdened than in 2007, and one in four spends at least half their household income on rent.
Where renters suffer most
Renters in Miami have it worst, according to Apartment List’s data. The city has the highest cost burden rate in the country, with 62.7 percent of renter households burdened by housing costs.
Other cities with high shares of cost-burdened renters include Riverside, California; Philadelphia; San Diego; Los Angeles; Boston; Orlando; New York; and Baltimore.Verify your new rate (Jul 12th, 2020)
The median renter in 20 out of the nation’s 25 largest metros is cost-burdened.
“There are only five metros — Dallas, Minneapolis, Charlotte, St. Louis and Houston — where the median renter can comfortably afford the median rent,” Salvati said. “Framing the problem in this way highlights the fact that rental housing affordability affects not just low-income households, but also millions in the middle-class.”
Get today’s mortgage rates
Ready to get out of the rent race and get your housing costs in check? Then shop around and see what mortgage rates you qualify for today.Verify your new rate (Jul 12th, 2020)