February 21, 2024
A San Diego home for lease. Picture credit score: Workers picture

Housing prices have taken a toll on affordability, driving the variety of “cost-burdened” households to new heights, in accordance with an evaluation based mostly on Census Bureau information.

Throughout the nation, there at the moment are 21.8 million such renter households, greater than ever earlier than, and charges have risen in nearly each market. 

Renters are thought of “price burdened” in the event that they spend greater than 30% of their revenue on lease, or “severely price burdened” in the event that they spend greater than half of their revenue on lease.

Native takeaways within the report, from ApartmentList.com:

  • Greater than half – 58%, or 297,000 households within the San Diego metro space – are cost-burdened, up from 56% 4 years in the past.
  • 30% of renter households within the San Diego metro are “severely” cost-burdened.
  • Between 2019 and 2022 the median lease in San Diego metro elevated by 16% whereas the median revenue of renter households elevated by 19%

Three California areas, together with San Diego, are within the high 5 for the very best proportion of cost-burdened households among the many 50 largest metros within the U.S. The listing is topped by two Florida metros:

  • Miami, 64.6 %
  • Orlando, 60.6%
  • Riverside, 60.2%
  • Sacramento, 59.1%
  • San Diego, 58.3%

On the state stage, Florida leads the best way with 60.3% of renter households burdened by housing prices, adopted by Hawaii, 57.8%, Nevada, 57.3%, California, 56% and Louisiana, 55.8%.

General, Census information signifies that the share of American renters who’re cost-burdened has risen to the very best stage since 2012, erasing enhancements made within the restoration interval that adopted the Nice Recession main as much as the start of the pandemic.

One driver of the issue is lagging incomes.

Nationally, cost-burdened households rose by means of the pandemic, from 48% of renters in 2019 to 52% in 2022.

Over that interval rising rents exceeded revenue development; from 2019 to 2022, nominal rents rose 19% whereas renter incomes climbed simply 16%. In 2023 and past, this sample would want to reverse to see an enchancment within the numbers of those that are price burdened.