One out of three Americans live in a housing market where rent for a three-bedroom home takes more than 30 percent of their monthly median income, according to a new study released by RealtyTrac. In some cities, the percentage is even higher.
Renters in the New York City borough of the Bronx are spending the most in the U.S. The average household there is forking over nearly 66 percent of their monthly income to rent a three-bedroom apartment, which averages $1,800 a month.
Renters in Philadelphia; Brooklyn, N.Y.; Baltimore; and Miami are paying nearly 50 percent of their income toward rent, according to RealtyTrac’s findings.
Since the housing crisis, a large demand for rental housing has pushed rents more than 21 percent higher since the housing market peaked in 2006, according to Harvard’s Joint Center for Housing Studies. However, real income has dropped about 14 percent over the past six years.
Source: “One in Three Americans Are Spending Too Much on Rent,” CNNMoney (May 1, 2014)