According to a report by Redfin, 22% of U.S. renters say they spend all of their monthly income on rent. They borrow money, get new jobs, and take money out of their retirement accounts to cover expenses.
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More than 1 in 5 U.S. renters say they pay their entire paycheck to pay rent, according to a new report released Friday by Redfin.
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20% of renters say they work a second job to help pay for housing, and an additional 19% say they work a job they hate to make ends meet.
The report also found that renters are also drawing down from their retirement accounts, putting less money toward savings, and borrowing money from family members to cover housing costs.
The findings come as rental costs have skyrocketed to an unprecedented level during the pandemic.
The median rent price in October was $1,985, down slightly from the end of last year and 3.5% from its peak in July 2023, according to Redfin data.
Still, this compares to the median monthly rent of $1,549 in March 2019, a year before the COVID-19 pandemic took hold and wreaked havoc on the country and housing market. It is something. A 28% increase in median rent prices has put housing out of reach for many renters.
“Rental prices have soared more than wages, making it more difficult for Americans, especially low-income Americans, to pay rent,” Redfin said. “Prices are already showing signs of stalling as more new apartments come onto the market, and rental affordability could improve in the near future.”
Thanks in part to historically low interest rates, new apartment construction has soared to a 40-year high. Many of these projects are still being completed, giving renters more choice in some markets and increasing competition among property managers and investors who want new buildings off the ground.
Redfin surveyed 1,802 U.S. residents between the ages of 18 and 65 in September for the report.
“Despite the difficulty in paying rent for many Americans, renting has become a popular option as affordability becomes even tighter for those looking to buy a home.”Red Mr. Finn said. “Separate Redfin analysis found that the number of rental households is growing three times faster than homeownership households, primarily because purchasing costs have increased faster than rental costs. ”
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