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More than one out of every five renters in the U.S. say they pay their entire paycheck to afford the rent, according to a new report released by Redfin on Friday.
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Twenty percent of renters say they work a second job to afford their housing costs, and another 19 percent say they work at a job they hate to make ends meet.
Renters are also pulling from retirement accounts, putting less money into savings and borrowing money from family to cover housing costs, the report found.
The findings follow an unprecedented run-up in rental costs during the pandemic.
Median rent was $1,985 in October, down slightly from the end of last year, and down 3.5 percent from a peak in July 2023, according to Redfin’s data.
Still, that’s compared to a median rental price of $1,549 per month in March 2019, a year before the COVID-19 pandemic took off and upended the nation and housing market. That 28 percent climb in median rent has left housing out of reach for many renters.
“Because rental prices have surged faster than wages, it’s more difficult than it used to be for Americans to afford rentals, particularly lower-income Americans,” Redfin said. “Rental affordability may improve in the near future, with prices already showing signs of losing steam as more newly constructed apartments come on the market.”
Fueled in part by historically low interest rates, the construction of new apartments ballooned to a four-decade high. Many of those projects are still being completed, giving renters in some markets more choice and creating more competition among property managers and investors hoping to get new buildings filled.
Redfin surveyed 1,802 U.S. residents between the ages 18 and 65 in September to create its report.
“Even though it’s difficult for many Americans to make their rent payments, renting is a popular choice because affordability has become even more strained for people looking to buy a home,” Redfin said. “A separate Redfin analysis found that the number of renter households is growing three times faster than homeowner households, largely because the cost of buying has increased faster than the cost of renting.”
