By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Finance > Want to live in these 11 cities? You’ll need to make at least $100,000 to avoid being ‘rent burdened,’ researchers say.
Finance

Want to live in these 11 cities? You’ll need to make at least $100,000 to avoid being ‘rent burdened,’ researchers say.

News Room
Last updated: 2023/06/06 at 4:07 PM
By News Room
Share
4 Min Read
SHARE

To avoid spending more than a third of their income on rent, tenants paying average prices in 11 major U.S. markets would need to earn six figures, according to a recent analysis from university researchers.

In fact, the average renter in the U.S. overall would have to make almost $81,000 — about $10,000 more than the actual median household income — to afford typical rental prices and avoid falling into the “rent-burdened” category, which includes those who devote 30% or more of their income to housing and have less money for emergencies, healthcare and savings as a result.

“Not a lot of people make that kind of money,” Ken Johnson, an economist at Florida Atlantic University’s College of Business and one of the three university researchers involved in the report, said in a statement Tuesday. “This data illustrates perfectly what we’ve been saying about an ongoing housing-affordability crisis. Rents aren’t coming down significantly, if at all, so until incomes increase sharply, consumers in much of the country will continue to do without basic needs.”

Johnson, working with Shelton Weeks of Florida Gulf Coast University and Bennie Waller of the University of Alabama, found in an analysis that average renters need to make $100,000 or more to avoid being rent burdened in cities including New York, Miami, Boston and Honolulu, as well as California cities such as San Francisco, Los Angeles, San Diego, Oxnard, San Jose and Riverside. Bridgeport, Conn., also made the list. 

The researchers have added similar rent-burden data to their monthly analysis on overpriced rental markets nationwide, relying on leasing data from Zillow’s Observed Rent Index to measure rent levels and “statistically model historical trends from 2014,” according to a statement from Florida Atlantic University. 

Though rent growth has softened this year after sky-high hikes earlier in the pandemic, their analysis nonetheless shows prices are above where they’d normally be based on historical data. For example, the average rent nationwide was $2,018 in April, according to the researchers’ most recent analysis. Where average rents should be, they said: $1,915. 

Higher prices can mean bad news for tenants who have little cash to spare. A person making less than $80,722 and paying the average U.S. rent would be considered rent burdened, the researchers noted, while a person making less than $48,433 would be considered severely rent burdened, meaning they spend half or more of their income on rent.

Still, some cities are more affordable than others. Wichita, Kan., where the average rental price was about $999 in April, is the least rent-burdened city in the U.S., according to the report: Tenants looking to afford the average price there need to clear just under $40,000 a year to avoid the rent-burden label, while tenants in the next-least-burdened city of McAllen, Texas, need to make around $47,700.

Compare that to high-cost cities like San Jose, where a renter paying the average price of about $3,289 would need to make at least $131,563 to avoid being rent burdened. 

We want to hear from readers who have stories to share about the effects of increasing costs and a changing economy. If you’d like to share your experience, write to readerstories@marketwatch.com. Please include your name and the best way to reach you. A reporter may be in touch.

Read the full article here

News Room June 6, 2023 June 6, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Texas flash flood claims at least 24 lives

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Opec+ plans to boost oil output in bid to win back market share

Stay informed with free updatesSimply sign up to the Oil & Gas…

Dealmakers hit pause on M&A as caution rules the boardroom

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

All hail the equity vigilantes

Stay informed with free updatesSimply sign up to the Capital markets myFT…

Apple races to box office glory with Brad Pitt’s F1 blockbuster

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Finance

4 Ways To Avoid Fake Shipping Fee Swindles

By News Room
Finance

Dell Supports Endeavor Miami’s Quest To Empower Black Founders

By News Room
Finance

The World’s 10 Most Expensive Cities To Live

By News Room
Finance

Biden Sends Student Loan Forgiveness Emails To 800,000 Borrowers

By News Room
Finance

New Student Loan Forgiveness Application For Those With Medical Issues

By News Room
Finance

Who Really Owns Nursing Homes, And How The Feds Are About To Learn More

By News Room
Finance

Gone Are America’s Cushiest Federal Prisons

By News Room
Finance

Can You Still Get Insurance After A Cancer Diagnosis?

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?