Due to inflation eating away at earnings and less supply of affordable housing, the majority of Americans today cannot afford median rent prices, according to a new report by the real estate company Redfin.
The analysis comes as other reports indicate that both homeowners and renters are struggling with high housing costs due to inflationary pressures, an inflated housing market, low supply and demand for affordable housing.
“Just 39% of renters make enough to afford the median-priced apartment,” the report states, with renters needing $11,000 more to afford a typical apartment in major U.S. cities.
“The typical U.S. renter household earns an estimated $54,712 per year. That’s 17.3% less – or $11,408 in dollar terms – than the $66,120 a renter must earn to afford monthly rent for the median-priced U.S. apartment ($1,653),” according to the analysis.
“The amount renters must earn to afford the median-priced apartment is at the highest level since October 2022,” Redfin says.
Report: 61% of renters can’t afford median apartment rate in U.S. https://t.co/RkLdWzPLTA
— John Solomon (@jsolomonReports) June 26, 2024