At least one in five people renting in the United States said they are spending all their regular income just to pay for their rent, a new survey found.
Real estate website Redfin commissioned a survey in September 2024 that polled 894 renters aged 18 to 65. The survey aimed to determine rent affordability in the US and what renters needed to do to afford their monthly housing payments.
Over one in five or 22% of US renters said they are spending their entire paycheck on rent, the survey found.
What Actions Did Americans Take to Afford Renting Costs?
The survey asked renters what actions they took to help afford their rent payments. At least 20% said they worked a second job, 19% said they worked a job they hated, 18% said they are relying on assistance from the government, and 14% said they either used cash gifts from family or saved money by previously living with family or friends.
In addition, 13% said they were forced to pull money out of their retirement savings just to pay their rent.
Rent Affordability in the United States
For perspective, the median rental price at the time the survey was conducted was $2,100, according to data from Zillow. While rental prices have flattened out over the past year, they are still much higher than before the pandemic.
In 2019, the median rent was $909 per month. This increased by 12% in 2021 to $1,015, the Pew Research Center reported.
The average wage in the country is increasing a lot slower than rental prices, making it harder for Americans to afford their housing costs. The median weekly earnings of full-time workers in the US was $1,165 as of the third quarter of 2024, per the Bureau of Labor Statistics.
That said, renting is still a more affordable choice for Americans as the costs of homeownership are soaring. As of October, the median sale price of an average single-family home in the US was $434,568. The contract rate for the 30-year mortgage term---the most popular mortgage option in the US---is also 6.84% as of the week ending Nov. 21.
