A Redfin report finds 22 percent of American renters say they pay their entire monthly rent to cover their rent. They take out loans, get second jobs and draw on pensions to cover expenses.
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More than one in five US renters say they pay their entire paycheck to pay rent, according to new report released by Redfin on Friday.
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20 percent of self-employed people say they work a second job to cover their housing costs, while another 19 percent say they work a job they hate to make ends meet.
Employers are also withdrawing money from retirement accounts, putting less money into savings and borrowing money from family to cover housing costs, the report said.
The findings follow an unprecedented rise in rental costs during the violence.
Median rent was $1,985 in October, down slightly from the end of last year, and down 3.5 percent from a peak in July 2023, according to Redfin data.
Still, that compares to an average rental price of $1,549 a month in March 2019, a year before the COVID-19 pandemic began and sent the country and housing market soaring. That 28 percent increase in median rent has left housing unaffordable for many renters.
“Because rents have risen faster than wages, it’s harder than ever for Americans to pay rent, especially low-income Americans,” Redfin said. “Rental costs are likely to improve in the near future, as prices are already showing signs of slowing down as more new homes come on the market.”
Buoyed in part by historically low interest rates, construction of new apartments reached a four-decade high. Many of those projects are still being completed, giving tenants in other markets more choice and creating more competition between property managers and investors hoping for new building fill.
Redfin surveyed 1,802 US citizens between the ages of 18 and 65 in September for their report.
“Although it is difficult for many Americans to pay rent, renting is a popular choice because affordability has become a major issue for people looking to buy a home,” said Redfin. “A separate Redfin analysis found that the number of rental homes is growing three times faster than owner-occupied homes, largely because the cost of buying has risen faster than the cost of renting.”
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