Sunday, September 6, 2015

Renters Are Spending a Record-High Share of Income on Rent

While Paul Krugman isn't concerned about price inflation, the rental squeeze is getting worse across the country, according to a new report by Zillow.

Renters can now expect to pay 30.2% of their income on rent, according to a Zillow analysis.

That is the highest percentage going back to 1979. the first year that Zillow has data for. Between 1995 and 2000, renters on average spent just over 24% of their incomes on rents.

Rental affordability worsened year-over-year in 28 of the 35 largest metro areas covered by Zillow. Denver, Los Angeles, San Francisco, San Jose, and San Diego are "unaffordable" for both renters and buyers, according to Zillow, Renters in these cities pay over 40% of their income in rent.


1 comment:

  1. Thirty-six percent here in California for us. Will be more immediately after minimum wage rises another dollar in 2016.