The proportion of Americans spending over a third of their income on rent has increased over the past two decades, reaching approximately 50% of all renters in 2023, according to recent Census data. Since 2021, rising housing costs have significantly contributed to the overall increase in the cost of living nationwide, with housing remaining a primary driver of inflation, as noted by the White House Council of Economic Advisers.
Netspend’s analysis reveals that housing cost-burdened households, defined as those paying more than 30% of their income on rent, are prevalent not only in high-cost states like California but also in places like Texas, Nevada and Florida. The percentage of housing cost-burdened renters grew from 40% to nearly 50% between 2000 and 2020, and 49% were classified as such in 2023.
In Texas, 47.7% of renters are housing cost-burdened, with 23.6% experiencing severe housing cost burdens. While alarming,
This financial strain makes it difficult for renters earning less than the area median income (AMI) to cover essential expenses and hinders their ability to save for future investments, such as purchasing a home, which affects long-term wealth accumulation and generational asset transfer.
Related Housing Cost-Burdened Articles:
- Report: Over 1.7 Million Texas Households Housing are Cost-Burdened
-
Analysis: Cost-Burdened Households On The Rise In Rural America
- 2018 Cost Burden Report: Despite improvements, affordability issues are immense