Americans spent 26% of their income on housing rentals in August, says Rapporteur



According to Realtor.com’s latest Monthly Rental Report, in August renters felt pressure from higher costs as Americans spent more than a quarter (26.4%) of their monthly budgets on home rentals.

Among the 50 largest metropolitan areas in the US, coastal areas led the least affordable rental markets in Augustwith rents accounting for the majority of family income in:

Miami, with 46.5%
– Los Angeles, with 40.7%
– San Diego, with 37.1%

“Our analysis underscores the very real rental affordability challenges facing many Americans today. Rents are significantly higher than in previous years and are absorbing a substantial portion of revenuewhich are growing at a rate slower than inflation,” said Danielle Hale, Chief Economist for Realtor.com.

Even so, says Rapporteur, there are some positive points for tenants lately, since based on the general rule that housing costs must be kept below 30% of paychecktenants were able to follow best practices in most large metropolitan areas.

Furthermore, as rental growth continued to cool, national incomes fell short of a new record for the first time in 9 months.

“If these trends and the typical seasonal cooling persist, renters will be better able to keep housing costs within a relatively manageable portion of their budgets in the coming monthsHalle added.

Rapporteur points out that the median rental price in the US decreased for the first time since November 2021 in August, to $1,771 from $1,781 in July. Furthermore, rental growth continued to moderate year-over-year, to a single-digit increase (+9.8%) after 13 consecutive months at a double-digit pace.

However, national rents remained more than 20% higher than August 2020 overall (+22.8%) and across all unit sizes.: studios at a median of $1,489 (+21.2%), one-bedroom apartments at a median of $1,653 (22.6%) and two-bedroom apartments at a median of $1,964 (+23.2%).

Rapporteur details that the affordability of rent worsened throughout the country and especially in the coastal meters. Despite the cooling in annual rental growth, August data indicates that rental affordability issues are on the rise. At the national level, rents accounted for a larger share of tenant income in August compared to last year (26.4% vs. 25.7%, on average).

Among the 50 largest metropolitan areas in the US, 9 had a rent-to-income share greater than 30%with coastal markets dominating the list of the 10 least affordable metro areas in August.

1Miami, Fla., 46.5% ($2,626)
2 Los Angeles, California, 40.7% ($2,946)
3 San Diego, Calif., 37.1% (2,888)
4 New York, NY, 36.3% ($2,807)
5 Boston, Massachusetts, 35.1% ($3,040)
6 Tampa, Fla., 32.9% ($1,789)
7 Riverside, Calif., 32.4% ($2,107)
8 Orlando, Fla., 32% ($1,842)
9 Providence, Rhode Island, 31.9% ($2,035)
10 Chicago, Ill., 29.7% ($2,061)

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Source-eldiariony.com