GREENVILLE (WNCT) – A new study finds Americans are spending too much of their income on rent, as 11.3 million Americans are considered rent-burdened households.
The study finds that 1 out of 4 Americans spend 50 percent of their income on rent. In cities with a high cost of living, half of renters only earn between $45,000 and $75,000 annually. The average rent of a new apartment is $1,300.
“Nationally, you’re looking at prices going up,” said Dan Jenkins, Realtor at United Real Estate East Carolina. “Locally, we’re seeing some marginal increases in rent. Things we look for in terms of income is we look for two and a half times the rent for their income.”
Researchers expect more Americans to become severely rent-burdened, as rates continue to rise faster than incomes. Within the next decade, it’s expected that 1.7 million to 3 million additional households will be spending over half their income on rent.