According to a Redfin report, 22 percent of U.S. renters admit to using their entire monthly income to cover their rent expenses. To make ends meet, they are resorting to borrowing money, taking on second jobs, and dipping into retirement savings.
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A recent report from Redfin reveals that more than one-fifth of U.S. renters apply their entire income towards rent payments.
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Twenty percent of renters are working additional jobs to cover housing expenses, while another 19 percent are not enjoying their jobs but sticking with them to make ends meet.
Renters are also resorting to borrowing from family, withdrawing from retirement funds, and saving less to afford their housing costs, as per the report findings.
The surge in rental prices during the pandemic has made it challenging for many renters to keep up.
In October, the median rent stood at $1,985, slightly down from the previous year and 3.5 percent lower than the peak in July 2023, based on Redfin’s data.
This increase contrasts sharply with the $1,549 median rent per month in March 2019, illustrating a 28 percent rise that has placed housing out of reach for several renters.
Redfin also mentioned that rental affordability might improve as rental prices start to show signs of stabilization with the increasing availability of newly constructed apartments in the market.
The construction of new apartments is at a four-decade high, driven by historically low interest rates, providing renters in certain markets with more options and intensifying competition among property managers and investors.
To compile the report, Redfin surveyed 1,802 U.S. residents aged between 18 and 65 in September.
Despite the financial difficulties faced by many in meeting rent obligations, renting remains popular due to increased home-buying costs. Redfin’s separate analysis revealed that the number of renter households is increasing three times faster than homeowner households, emphasizing the growing disparity between buying and renting expenses.
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