Americans Spend More Than One-Quarter of Their Income on RentBy RISMedia Staff
Americans spend 26.4% of their monthly budgets on rent, an increase from the 25.7% from 2021, according to the August Monthly Rental Report from realtor.com®.
The report found that the U.S. median rental price declined for the first time since November 2021, $1,781 in July to $1,771 in August. Additionally, rent growth continued moderating on a year-over-year basis, down to a single-digit increase, plus 9.8%, after 13 straight months at a double-digit pace. Key highlights:
“Our analysis underscores the very real rental affordability challenges that many Americans face today. Rents are significantly higher than in previous years and are taking up a substantial portion of incomes, which are growing at a slower pace than inflation,” said Realtor.com® Chief Economist Danielle Hale. “Still, there are some bright spots for renters as of late. Based on the general rule of thumb that you should keep housing costs to under 30% of your paycheck, renters were able to follow best practice in the majority of large metros in August. Plus, as rent growth continued to cool, national rents didn’t hit a new record-high for the first time in nine months. If these trends and typical seasonal cooling persist, renters may be better able to keep housing costs to a relatively manageable portion of their budgets in the months ahead.” For the full report, visit www.realtor.com/research/august-2022-rent. |
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