Tenants Spending Record-High Shares of Income on Rent
As rent prices continue to increase nationwide, the Wall Street Journal confirmed on Thursday that tenants are now spending a higher share of their income on housing than ever before.
According to the paper, most renters can expect to pay at least 30 percent of their income on rent, which is the highest number we’ve seen since Zillow began collecting data in 1979.
“Our research found that unaffordable rents are making it hard for people to save for a down payment and retirement, and that people whose rent is unaffordable are more likely to skip out on their own health care,” said Svenja Gudell, Zillow’s chief economist.
Image via flickr/Juhan Sonin