Rent Prices Outpacing Wages: Struggling to Keep Up
As Rent Prices Outpace Wages, Renters Struggle to Keep Up
22nd February, 2023,
As of 6:21 PM PST on February 13, 20
Published: 6:21 PM PST on February 13, 2023
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Recent data from the U.S. Census Bureau shows that rent-burdened households, those spending more than 30% of their income on rent, total some 40.6 million in 2021. This is a staggering number that reflects the growing gap between wages and rent prices across the country.
The data from the Census Bureau comes on the heels of a report by Moody’s Analytics which found that the average American renter is now spending more than 30 percent of their income on housing. According to the report, rent-burdened households are even more common in some cities, such as New York, where a household with the area's median income would need to pay nearly 69% of their earnings to rent the average-priced apartment.
The Biden administration has responded to this crisis with a “Blueprint for a Renters Bill of Rights” which seeks to increase protections for renters and promote rental affordability. However, the gap between wages and rent continues to widen, making it difficult for many renters to keep up.
San Diego, which recently ranked No. 7 on a list of the top 20 high-income renter spots, has seen a dramatic increase in high-income renters since 2015, going from 18,000 to 33,400. Despite this influx of wealthy renters, the city’s rent-burdened population still stands at 12.4%.
With rent prices continuing to outpace wages, many Americans are finding it increasingly difficult to afford housing. The “30% rule” of thumb is becoming more and more difficult to follow, leaving millions of Americans rent-burdened and struggling to keep up.
0. “15 million renters pay more for housing than they can afford. Here's how to figure out if you're one of them” CNBC, 19 Feb. 2023, https://www.cnbc.com/2023/02/19/amid-high-housing-costs-how-to-figure-out-what-you-can-spend-on-rent.html
1. “The average American tenant is rent-burdened. Here’s what that means for the economy.” The Hill, 21 Feb. 2023, https://thehill.com/changing-america/sustainability/infrastructure/3866947-renters-paying-30-percent-of-income-for-housing-crisis/
2. “Tom York on Business: High-Income Renters in San Diego Have Doubled Over 5 Years” Times of San Diego, 22 Feb. 2023, https://timesofsandiego.com/business/2023/02/21/tom-york-on-business-high-income-renters-in-san-diego-have-doubled-over-5-years/
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