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The Rent-To-Income Ratio Is Holding Steady For Many Renters

Sept. 13, 2017

Rent prices are rising, but so are many renters’ incomes.

Bloomberg reports that, based on the 5.7 million rental leases in the RealPage database, the national median rent-to-income ratio has hovered around 23 percent since 2010, and that the median income for renters has risen from $45,000 to $61,000 during that time.

The findings from RealPage, a software that landlords use to manage their properties, might be taking into account more affluent renters. The median income for a renter of a market-rate apartment unit is $32,000, according to recent Census data.

Still, that income gap between $32,000 and $61,000 helps explain why rent-to-income ratios remain flat while others warn of a growing affordability crisis. Greg Willett, the chief economist at RealPage, said he doesn’t question that rising rents are straining plenty of households, adding that close to 1 in 3 U.S. households earns less than $30,000 a year.

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