A smaller chunk of paychecks are going to rent for some Americans in recent years
American renters are saving more of their paychecks in parts of the country.
Rentersare "cost burdened" if 30% or more of their income goes to rent, mortgages or other housing costs, according to the U.S. Department of Housing and Urban Development.
But in recent years, a growing share of renters are paying15% or less of their income to rent in 2023, according to the latest figures from the U.S. Census's American Community Survey.
Spending less money onrent can help pay off debt and save money for other life goals, such as buying a house.
It was more common for renters to pay less of their income to rent in some states and major cities, including in the midwest, a ConsumerAffairs review finds.
The rent-to-income ratio varies across the country in large part because ofbetter deals in some places and people having higher incomes that aren't hit as badly by rent costs.
The five citieswith thehighest percentageof renters paying 15% or lessof their income to rent were:
- San Francisco, California (21.1%)
- Seattle, Washington (16.5%)
- Washington D.C. (15%)
- New York City, New York (14.5%)
- Chicago, Illinois (14.3%)
The five cities with thelowest percentageof renters paying 15% or lessof their income to rent were:
- Fort Worth, Texas (7.7%)
- San Diego, California (8.3%)
- Los Angeles, California (9.5%)
- Dallas, Texas (9.6%)
- Charlotte, North Carolina (9.8%)
The five states with thehighest percentageof renters paying 15% or lessof their income to rent were:
- North Dakota (21.1%)
- West Virginia (19.1%)
- Wyoming (18.6%)
- South Dakota (18%)
- Iowa (17%)
The five states with thelowest percentageof renters paying 15% or lessof their income to rent were:
- Florida (7.2%)
- Delaware (8.2%)
- California (8.8%)
- Oregon (9.1%)
- Vermont (9.4%)
Is less income going to rent?
Renters are saving more of their salaries in recent years.
In 2010, around 11% of renters paid 15% or less of their income to rent, but that has number has grown to above 14% since 2019.
On the other hand, the share of renters paying 30% or more of their income to rent has edged down slightly in recent years to nearly half of renters, compared to around 53% of renters in 2010 and 2011.
Six states also saw declines in the share of income going to rent in 2023:Illinois, Kansas, Minnesota, New Mexico, New York and West Virginia, U.S. Census economist Jacob Fabina said in an article.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-09-27 03:50:20
