Residential Real Estate News
1 in 5 Renters in America Entire Paycheck Used to Pay Monthly Rent in 2024
According to new data from Redfin, over one in five U.S. renters (22%) report that all of their regular income is spent on rent in 2024.
Many renters are taking on additional jobs to cover housing costs, with 20% saying they work a second job for this purpose. Similarly, 19% of renters have worked in jobs they disliked to afford their rent.
Family support also plays a role for some renters, with 14% using cash gifts from relatives to make rent payments. Others turn to retirement savings, with more than 13% withdrawing funds early and 12% reducing their contributions to retirement accounts to meet housing expenses.
Although rent growth has leveled off over the past year, current rental prices remain significantly higher than pre-pandemic levels. With rents rising faster than wages, affordability has become increasingly challenging, particularly for lower-income households. However, rental affordability may improve as newly built apartments enter the market, potentially easing price growth.
Despite these challenges, renting remains a popular option due to the even greater affordability pressures in the home-buying market. A separate Redfin analysis revealed that the number of renter households is growing three times faster than homeowner households, as homeownership costs continue to rise at a faster pace than rents.
This data is based on a Redfin-commissioned survey conducted by Ipsos in September 2024, polling 1,802 U.S. residents aged 18-65.
