Report 11 million Americans spend half their income on rent

[tom_mai78101]

The number of renters dedicating at least half of their income toward housing hit a record high of 11 million people in 2014, according to the annual State of the Nation's Housing Report from the Joint Center for Housing Studies of Harvard University.

A total of 21.3 million are spending 30% or more of their paycheck to cover the rent -- also a record high.

Personal finance experts generally suggest budgeting around 30% of monthly income to cover housing costs.

But that's getting harder to do with rent prices rising faster than wages.

11 million Americans spend half their income on rent

The number of people spending half their income on rent hit a record high in 2014, according to the Joint Center for Housing Studies of Harvard University.

money.cnn.com

 

[Varine]

Didn't you know increases minimum wage standards automatically increases the prices of everything? A conservative that took an econ class in high school explained it to me, because there's only one factor in anything.

 

[Mahucharn]

Sad as it is, I totally believe it. I've been looking at apartments in the Bay Area recently (trying to move out once I get a job probably) and haven't been able to find a studio for less than $2k/month ($24k/year). Oh you want to live in a decently nice area? Better be willing to pay $2,500/month + a 10% increase every year! Sad thing is that it's actually cheaper to buy a house here than it is to rent, but when rent is so high it's impossible to save enough for a down payment. </rant>

 

[FireCat]

it's actually cheaper to buy a house here than it is to rent, but when rent is so high it's impossible to save enough for a down payment.

I agree but it's not impossible.

 

[Varine]

Sad as it is, I totally believe it. I've been looking at apartments in the Bay Area recently (trying to move out once I get a job probably) and haven't been able to find a studio for less than $2k/month ($24k/year). Oh you want to live in a decently nice area? Better be willing to pay $2,500/month + a 10% increase every year! Sad thing is that it's actually cheaper to buy a house here than it is to rent, but when rent is so high it's impossible to save enough for a down payment. </rant>

That's how it is here. I mean, it's obviously not cheaper to buy a 250,000 dollar house than rent for a year, but the mortgage payments are like half as much.

 

[The Helper]

I don't spend half my income on rent and I do rent and get all bills paid plus pay child support. The cost of living varies widely across America. Texas is not that bad especially Houston.

 

[tom_mai78101]

I don't spend half my income on rent and I do rent and get all bills paid plus pay child support. The cost of living varies widely across America. Texas is not that bad especially Houston.

You're probably not one of the 11 million Americans.

 

[seph ir oth]

Sad as it is, I totally believe it. I've been looking at apartments in the Bay Area recently (trying to move out once I get a job probably) and haven't been able to find a studio for less than $2k/month ($24k/year). Oh you want to live in a decently nice area? Better be willing to pay $2,500/month + a 10% increase every year! Sad thing is that it's actually cheaper to buy a house here than it is to rent, but when rent is so high it's impossible to save enough for a down payment. </rant>

I moved to Hayward for my bay area job ... found a 1 bedroom house for $1350 / mo. Prolly gonna renew, it's been great! If you don't mind the commute (I recommend either motorcycle or BART) then east bay is where it's at.

 

[Varine]

I'm trying to move to Huntington or Long Beach, commute to LA. Assuming the state lets me fucking leave anyway.