Rent Prices Spike By 60% And Now Americans Are Spending Their Entire Paycheck On Housing Costs

It's more expensive than ever to rent.

In fact, rents were unaffordable in 2024 for almost 25 million households in the United States, an all-time high, according to a report on America’s Rental Housing by the Joint Center for Housing Studies of Harvard University released this month.

The most astonishing finding highlighted by analysts in the Harvard report is that a huge number of renters are spending their entire paycheck on housing.

Are you one of them?

A common guideline advises against spending more than 30% of your earnings on housing costs. If you spend more than a third of your income on rent, you're considered to be “moderately rent burdened,” if you spend 50% of your paycheck on rent you're considered “severely rent burdened” by federal standards.

However, amidst the worsening housing crisis, millions of Americans are dedicating 100% of their monthly pay towards rent.

Can you believe that?

That's a tough pill to swallow.

[shadowbanneddays]

I'm in UTAH!! My rent is 2000 month for a 1 bedroom. Utilities 280.00 month. I'm making 18.75 hour after 50 or so hours a week, I'm left with 700-900.00 a month for gas, car payment, car insurance, health insurance and food...I'm tired of this shit!

[factz]

It was rigged when they took the dollar off the gold standard

[MagarethWoods]

Last year I was working full time, budgeting groceries, unable to afford date nights, and missing time with my kids. Now I learned how to make money online. Now am a SAHM, homeschooling, and making profits every week.

[larrytennant]

I'm sleeping in my camper and it's ok. I'm saving about $2500 a month in house payments. It's the only way I can keep a roof over my head. Loving it !😊😊

[AlmaMercer]

No one should have to spend more than 20% of their take home for anything to rent

[shadoww]

“Truth is... the game was rigged from the start.”

[jeffreyjackson]

Buying a house hasn't been a consideration for me in easily 20 years, give or take a year. My focus now: Spend wisely, save often, and keep my debt under control, which I do.

[annemoore]

I hope we all know that it doesn't matter who is in the 'top job' because this is a systemic problem -- greed. We have allowed many of our economic sectors, to take advantage of the American people. It's disgusting and frightening for the future of our country. My husband and I will be retiring in the next two years n another country. We are absolutely worried that SS! will no longer be funded. we'll have to rely on his pension, a 403 (b) and a very prolific Investment account with Stephanie Janis Stiefel my FA. Our national debt is bloating and expanding every month. Our government needs to get spending under control and cut the federal budget.

[papabear]

I can say he's absolutely right. I'm in Indiana, where housing used to be affordable. It's not anymore. The only place I can find affordable housing is in central to western Kansas.

[austinbar]

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people at least in California, where I currently reside are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
The prices of homes are really quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.

[goudwaard]

People nowdays cant afford rent nor housing...

[JS-jhcy]

This explains why need and use of food banks is exploding

[Mike_Genisys]

If politicians wanted to fix the system they could, but it's easier to complain and say look at how hard it is to fix it.

[truelies]

Rents will continue to spike up and skyrocket slowly but surely now. No relief in sight. No light at the end of the tunnel. 2025 won't be good. Food drink groceries will continue to spike up and skyrocket too. Inflation ain't going down either. Prices of everything we consume will continue to go up up and away!!! 🚀 Good luck all.

[BrandstifterD]

This problem has arisen quite deliberately and consciously. The working and middle classes have gained too much money and independence during economic boom, but since the 1990s the wealth of these groups of the population has been constantly decreasing, but the wealth of the richest has been increasing significantly. If you give most of your income just for housing for some freedom, travel and thinking, you simply will not have money or time left because most of your time will be spent working to be able pay for the basic necessities.

[deadcell]

In FL, you need to make 3x the rent to QAULIFY to rent a 1 bedroom apartment. So you have to make $37/hr, 40 hrs a week just to get your foot in the door. Hardly anyone makes that down here.

[UnknownSoldier]

The system is working as it was planned to work, was never built for anyone but to always work against. It only benefits them at the top who benefit from every problem that occurs.

[luigijohson]

A key factor often overlooked is that over 25% of new homes are being acquired by investors, rather than individuals seeking primary residences. Even if Baby Boomers decide to offload their properties or more housing stock enters the market, it won't alleviate the underlying issue. Wealthy investors will continue to absorb the available inventory, which will keep home prices elevated.

[Wolfsangel]

The 60 billion that has been given to Ukraine would have ended homelessness several times over.

[tonyzhu]

I just paid for this month's rent yesterday which was the 12th... Next bills are water, car insurance, cell and Internet then rent again but now I only have like 18 days left so gonna be late again in the late rent cycle with monthly eviction letters. Started selling everything I got and slowing down on marijuana because I don't want to be homeless. Hotels and restaurants won't hire me so I am in the process of becoming a security guard.