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.
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady