Renters are feeling higher cost pressure, based on August data, as Americans spend a quarter (26.4%) of their monthly budget on rent in the eighth month of the year, on average, according to the Realtor’s Monthly Rental Report. com.
Among America’s 50 largest metropolitan areas, coastal areas top the August list of least affordable rental markets, with rents accounting for the largest share of household income. in Miami (46.5%), Los Angeles (40.7%) and San Diego (37.1%).
By 2022, Florida will be the fastest growing state in the US real estate market.
“Our analysis underscores the real rental affordability challenges many Americans face today. Rent is much higher than in previous years And they’re sucking up a huge chunk of revenue, which is growing at a slower rate than inflation,” said Danielle Hale, chief economist at Realtor.com.
Still, there have been some bright spots for renters lately. Based on the general rule of keeping housing costs below 30% of your income, renters were able to do so in most large metropolitan areas during August.
Furthermore, as income continued to rise, national income fell below a new record for the first time in nine months. “If these trends and the typical seasonal cooling continue, Tenants will be able to better maintain the cost of housing in a relatively manageable part of their budget in the coming months,” he said.
Average rental price in the US drops for the first time since November 2021, in August $1,771, up from $1,781 in July, Further, rental growth continued to moderate year-on-year, at a double-digit pace (+9.8%) after 13 consecutive months.
Renting in the US suburbs is no longer as cheap as it used to be
Although National fares exceed 20% Overall (+22.8%) and across all unit sizes as of August 2020: studios on average $1,489 (+21.2%), one-bedroom apartments on average $1,653 (+22.6%) and two beds for a median thousand 964 dollars (+23.2%).
August 2022 Rental Metrics, National:
|unit size||average rent||Changes in August 2021||Changes in August 2020|
Rental affordability deteriorates, especially in m2 . In
Despite the decline in annual rental growth, the August figures show that rental affordability issues are on the rise. across the United States, A substantial portion of tenant income is attributable to rent in August compared to last year (on average 26.4% versus 25.7%).
Of the country’s 50 largest metro areas, nine had a rental share of over 30% of income, with coastal markets dominating the list of 10 least affordable metro areas in August.
Top 10 Least Affordable Markets by Percentage of Rent-to-Income,
|range||Metro||Earlier 2022 rent share||August 2022 median rent||2022 Monthly SS enter||August 2021 rent share||August 2021 median rent||2021 Monthly SS enter|
|2||Los Angeles, California||40.7%||$2,946||$7,234||40.2%||$2,675||$6,648|
|3||San Diego, California||37.1%||$2,888||$7,792||36.0%||$2,590||$7,186|
|4||New York, NY||36.3%||$2,807||$7,726||32.8%||$2,362||$7,206|
|9||Providencia, Rhode Island||31.9%||$2,035||$6,386||29.9%||$1,758||$5,885|
Since higher rents leave less money in renters’ pockets each month, more than half (60%) of renters cited high rents and household expenses as the biggest causes of financial stress.