More than half of all renters in the United States are struggling to suffer from financial strains due to high housing costs, a recent survey found.
National rental price rose by 0.2% year over year in the first quarter of 2024, making it 26% higher than median rents recorded before the COVID-19 pandemic. This has caused financial hardships among a majority of renters in the US, with 77% saying they rate their personal finances as fair or poor. In addition, 20% of renters said they needed to downsize or relocate due to the burden of housing costs.
That is according to the findings of Nationwide's 2024 Economic Impact survey, which polled 2,000 consumers aged 18 or older. Of those individuals, 50% cited high housing costs for their financial hardship, while 51% pointed to wages not being able to keep up with the rising cost of living.
"While many Americans are feeling financially strained, nowhere is that strain more apparent than for lower earners and renters, who are reacting strongly to the daily budget pressure they feel from high housing costs and sticky inflation," Kathy Bostjancic, Nationwide's Chief Economist, said in the report.
How Are Homeowners Faring?
Much like renters, more than half of homeowners in the US are also struggling to afford housing, with 53% rating their personal finances as fair or poor. At least 8% also said they had to downsize or relocate to afford housing costs, the survey reported.
Furthermore, the survey found that 40% of homeowners delayed necessary structural repairs to their homes, with 69% saying they did so due to the high costs of maintenance while 48% said they are saving money for other financial obligations.
Where Are Americans Struggling To Afford Housing Costs?
Nationwide's survey did not provide location-specific data, but a new report from the National Low Income Housing Coalition noted that residents earning the minimum wage of $12 an hour in Florida would need to work 98 hours a week to afford a one-bedroom unit and 117 hours for a two-bedroom rental.
Specifically, renters would need to make $29.33 an hour to afford a one-bedroom unit with a $1,525 monthly rent. Those looking to rent a two-bedroom unit costing $1,833 a month would need to make $36 an hour, the report noted.
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