It’s more expensive than ever to rent.
In fact, rents were unaffordable in 2024 for almost 25 million households in the United States, an all-time high, according to a report on America’s Rental Housing by the Joint Center for Housing Studies of Harvard University released this month.
The most astonishing finding highlighted by analysts in the Harvard report is that a huge number of renters are spending their entire paycheck on housing.
Are you one of them?
A common guideline advises against spending more than 30% of your earnings on housing costs. If you spend more than a third of your income on rent, you’re considered to be “moderately rent burdened,” if you spend 50% of your paycheck on rent you’re considered “severely rent burdened” by federal standards.
However, amidst the worsening housing crisis, millions of Americans are dedicating 100% of their monthly pay towards rent.
Can you believe that?
That’s a tough pill to swallow.
Homebuyer demand has plummeted to the lowest level in 30 years.
With mortgage applications to purchase down 63% from the pandemic peak.
The last time we saw demand this low, it was 1995. pic.twitter.com/g0OsFiv5Nr
— Nick Gerli (@nickgerli1) January 13, 2025