There were significantly less cost-burdened renters last year due to the fact that incomes went up at a quicker pace than rents, Apartment List reports. Texas metros did very well, with fewer renters struggling with affordability. Cost burdened means that your rent is more than 30% of your income.
However, more than 50% of renters still face rent that exceeds what they can afford across the country, especially in Florida and Southern California.
The solution is for government and advocates to make a goal of wage growth and tampering down rising rents.
Nearly 44 million households in America are renters, which is 37% of all households in the US. According to Census data, 50.6 percent of US renters were cost-burdened in 2015, meaning they spent more than 30% of their income on rent. That’s down 2.8 percent from 2011, which was the peak for that metric.
Even though things are getting better, almost 25% of those renting are still seeing over 50% of their income go towards rent.
Affordability is best in Texas and tech hubs and worst in Southern California and Florida, where rent is climbing through the roof and wages aren’t increasing. If the trend continues, those coasts may see renters moving inland in search of cheaper rent and higher wages.
In Texas, 48.0 % of renters are cost-burdened in Austin, 47.2% in Dallas, 48.3% in Houston, and 45.9% in San Antonio, which is much lower than the national average.
In general, incomes have grown more quickly than rent in cities that have a growing tech industry. While rents have gone up in Texas by 10% to 20%, incomes have increased accordingly, keeping rent affordable.