When you end up struggling to make your rent payment every month, you’re not alone. More Americans are having that problem than ever before, in line with recent data from Harvard University.
The variety of American renters considered “cost burdened” by their monthly housing payment in the newest count from 2022 hit an all-time high of twenty-two.4 million — amounting to half the tenants within the U.S. — in line with a study released Thursday by Harvard’s Joint Center for Housing Studies.
Anyone who spends greater than 30% of their income on rent and utilities is decided to be cost burdened, and the study found greater than half of those tenants were severely burdened, with 12.1 million shelling out greater than 50% of their income on housing costs — one other record-high number.
The study noted that the worth of rent within the U.S. has outpaced income gains for many years, however 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.
Renters in 2022 weren’t only left with less money of their pockets at the tip 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.
The variety of American renters considered “cost burdened” is at an all-time high. Getty Images
The pain of high rental costs is removed 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’s down 3.5% from its July 2022 peak, but still well above pre-pandemic levels.
Inflation peaked at 9.1% in July 2022, adding further sting to household budgets. Getty Images
The median asking rent price continues to be 22% higher in comparison with the identical time in 2019, underscoring the numerous price pressures renters proceed to face.
FOX Business’ Daniella Genovese contributed to this report.
