According to data from the U.S. Census Bureau’s 2023 American Community Survey, just under half of America’s renters are considered cost-burdened. The survey found that 21.1 million renters, out of 42.5 million rental households in the United States, spent 30% or more of their income on housing costs last year. The 30% threshold is commonly used to measure housing affordability. The survey revealed that renters in 2023 had a higher median housing cost as a percentage of income compared to homeowners, with renters coming in at 31%, while homeowners with a mortgage were 21.1% and homeowners without a mortgage were at 11.5%. The Census data also showed that last year was the first time in a decade that the real median cost of renting grew faster than the real median home value — up 3.8% compared to 1.8%. Recent data suggest a slowdown in the rental market, which could help lighten the cost burden facing rental households across the country.
Source: Philadelphia Business Journal; 9/16/2024