Housing Rent in the United States
AB: Unless you were very fortunate, you probably rented an apartment, house, or some place in which to live. Even when we started out, rent took a sizeable amount of “our” income near Chicago. Jan being a paralegal and I finishing up college certainly solved the issue over time. Even then an early on, we were saving our pennies so we could afford a house of our own. It came over a few yearly and we put 10% down.
The ten percent down was something new then. It was kind of a big deal and then it was not as people had difficulty getting 20 to buy a home. So, banks loosened up. Not the issue today as it was then. Interest rate then? Eight Percent. And today it is 2.6% on a VA loan. Quite a bit has changed on home buying over the decades. Somewhat easier, I believe . . .
“How much do households in the US spend on rent?”
– by USAFacts
About 32.8% of their income in 2024. This is measured by comparing median, or average, rent and median monthly income for renting households. Median rent, including utilities, was about $1,487 per month. Median monthly income among renting households was about $4,537 per month.
Comparing rent to renter income provides one measure of rental affordability. Dividing rent by income provides what is called a rent-to-income ratio. A higher ratio of rent-to-income indicates rent is less affordable while a lower ratio indicates it’s more affordable.
The Department of Housing and Urban Development considers households with a rent-to-income ratio of more than 30%, that is, households that spend more than 30% of their income on housing, to be cost-burdened. Cost-burdened households may have less money for other necessities such as food, healthcare, or savings. When median monthly rent is more than 30% of median monthly income, it means a typical household would meet the definition of housing cost-burdened.
The national rent-to-income ratio reached a high of 33.8% in 2011 following the Great Recession. It was 32.8% in 2024 after increasing 0.15 percentage points from the previous year.
Where is rent most and least affordable?
The ratio of average rent to average income varies throughout the United States. It was highest in Florida (38.5%) and Puerto Rico (37.5%) and lowest in North Dakota (23.6%) and South Dakota (25.8%).
That year, median rent in Florida was $1,812 per month, the seventh highest of all 50 states plus Washington, DC, and Puerto Rico. Median monthly renter household income was $4,705, resulting in the least affordable rental market and a 38.5% rent-to-income ratio.
“How much do households in the US spend on rent?” USAFacts, More data on Rents nationwide.