Housing costs now unaffordable for record number of renters in US
Last Updated on January 27, 2024 by Admin
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Global real estate adviser Jenna Stauffer argues the American dream of home ownership still exists during her appearance on ‘Mornings with Maria.’
If you find yourself struggling to make your rent payment every month, you’re not alone. More Americans are having that problem than ever before, according to new data from Harvard University.
The number of American renters considered “cost burdened” by their monthly housing payment in the latest count from 2022 hit an all-time high of 22.4 million — amounting to half the tenants in the U.S. — according to a study released Thursday by Harvard’s Joint Center for Housing Studies.
A new study from Harvard shows half the renters in the U.S. cannot afford their housing costs, marking a record high. (Fox News)
Anyone who spends more than 30% of their income on rent and utilities is determined to be cost burdened, and the study found more than half of those tenants were severely burdened, with 12.1 million shelling out more than 50% of their income on housing costs — another record-high number.
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The study noted that the price of rent in the U.S. has outpaced income gains for decades, but the share of cost-burdened renters grew across all income brackets in 2022. The findings showed the median amount of residual income renters had left over after paying their monthly housing costs plummeted to an all-time low of $310.
A new housing study from Harvard found the median residual income U.S. renters had left over after paying their housing costs hit an all-time low in 2022, the last time the data was measured. (Leonardo Munoz/VIEWpress / Getty Images)
Renters in 2022 were not only left with less money in their pockets at the end of the month, the purchasing power of those dollars was depleted. Inflation peaked at 9.1% in July 2022, adding further sting to household budgets.
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The pain of high rental costs is far from over.
Data from Realtor.com released this week shows the median price of asking rent ticked down a measly 0.4% year-over-year in December to $1,713. That is down 3.5% from its July 2022 peak, but still well above pre-pandemic levels.
The number of Americans overburdened by their rent hit a record high in 2022. (FREDERIC J. BROWN/AFP via Getty Images / Getty Images)
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The median asking rent price is still 22% higher compared to the same time in 2019, underscoring the significant price pressures renters continue to face.
FOX Business’ Daniella Genovese contributed to this report.
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