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Surging rents squeezing middle-class Americans the hardest, study shows
Rent costs in the US are growing at the fastest pace in decades
Rent prices in the U.S. are rising at the fastest pace in decades, slamming U.S. households across the country, according to data from the Bank of America Institute.
Median rent payments for Bank of America customers surged 7.4% in July from the previous year, up from 7.2% in June, according to a new report from the Charlotte-based bank. Although skyrocketing rents are squeezing Americans across the income spectrum, middle-income and younger workers are feeling the biggest pinch.
"A significant increase in rent prices can have meaningful impact on household financial situations, particularly for middle and lower income households," the report said.
Rising rents are a concerning development because higher housing costs most directly and acutely affect household budgets. Roughly 34% of households are renters, according to Census Bureau data, but that figure is even larger for lower- and middle-income families. More than half — roughly 52.6% — of households with family income that is below the national median of $31,133 are renters.
And despite the decrease in headline inflation — which was largely attributed to a decline in gasoline prices — the cost of essentials such as rent and food continued to soar higher in July. Rent jumped 0.7% over the month and 6.3% on an annual basis, according to the data.
For consumers with an annual household income between $51,000 and $100,000, median rent payment jumped even more, soaring 8.3% from the previous year in July. The lowest income group that earns $50,000 or less, meanwhile, saw a 7.4% increase. Households making more than $251,000 saw the smallest annual increase at 5.9%.
There are several reasons for runaway rent costs, including high demand as steep prices and rising interest rates push prospective homebuyers out of the housing market. Low inventory and high demand also explain the increases.
https://www.foxbusiness.com/economy/surging-rents-hitting-middle-class-americans-the-hardest
Rent costs in the US are growing at the fastest pace in decades
Rent prices in the U.S. are rising at the fastest pace in decades, slamming U.S. households across the country, according to data from the Bank of America Institute.
Median rent payments for Bank of America customers surged 7.4% in July from the previous year, up from 7.2% in June, according to a new report from the Charlotte-based bank. Although skyrocketing rents are squeezing Americans across the income spectrum, middle-income and younger workers are feeling the biggest pinch.
"A significant increase in rent prices can have meaningful impact on household financial situations, particularly for middle and lower income households," the report said.
Rising rents are a concerning development because higher housing costs most directly and acutely affect household budgets. Roughly 34% of households are renters, according to Census Bureau data, but that figure is even larger for lower- and middle-income families. More than half — roughly 52.6% — of households with family income that is below the national median of $31,133 are renters.
And despite the decrease in headline inflation — which was largely attributed to a decline in gasoline prices — the cost of essentials such as rent and food continued to soar higher in July. Rent jumped 0.7% over the month and 6.3% on an annual basis, according to the data.
For consumers with an annual household income between $51,000 and $100,000, median rent payment jumped even more, soaring 8.3% from the previous year in July. The lowest income group that earns $50,000 or less, meanwhile, saw a 7.4% increase. Households making more than $251,000 saw the smallest annual increase at 5.9%.
There are several reasons for runaway rent costs, including high demand as steep prices and rising interest rates push prospective homebuyers out of the housing market. Low inventory and high demand also explain the increases.
https://www.foxbusiness.com/economy/surging-rents-hitting-middle-class-americans-the-hardest