Business
Published January 26, 2024, 9:28 PM ET
If you're struggling to pay your rent every month, you're not alone. More Americans are experiencing this problem than ever before, according to new data from Harvard University.
The number of American renters considered “cost-burdened” by their monthly rent payments in the most recent count from 2022 reached an all-time high of 22.4 million — equivalent to half of renters in the U.S. — according to a report Thursday from Harvard Joint Center published study for housing studies.
Anyone who spends more than 30% of their income on rent and utilities is considered cost-burdened, and the study found that more than half of these renters were severely burdened: 12.1 million spend more than 50% of their income on housing costs – another record-breaking number.
The study found that rent prices in the U.S. have been increasing faster than income growth for decades, but the share of cost-burdened renters increased across all income brackets in 2022. Monthly housing costs fell to an all-time low of $310.
Renters in 2022 not only had less money in their pockets at the end of the month, but the purchasing power of those dollars had been exhausted. Inflation peaked at 9.1% in July 2022, putting additional strain on household budgets.
The number of American renters considered “cost-burdened” is at an all-time high. Getty Images
The pain of high rental costs is far from over.
Realtor.com data released this week shows the median asking rent price fell a meager 0.4% year-over-year to $1,713 in December. That's 3.5% less than the peak in July 2022, but still well above pre-pandemic levels.
Inflation peaked at 9.1% in July 2022, putting additional strain on household budgets. Getty Images
The median asking rent is still 22% higher than the same point in 2019, highlighting the significant pricing pressure tenants continue to face.
Daniella Genovese of FOX Business contributed to this report.
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