More Than 1 in 5 Renters Use Their Entire Paycheck to Pay Rent: Survey

A home on the market in Denver, Colo., on Feb. 10, 2024. David Zalubowski/AP Photo

More than one in five U.S. renters—22 percent—use all of their regular income to pay for rent, according to a recent survey commissioned by real estate brokerage firm Redfin.

The survey, conducted in September by Ipsos among 1,802 U.S. residents aged 18 to 65, found that 19 percent of renters reported working a job they disliked to afford rent, while 20 percent said they had taken on a second job to pay for housing.

Fourteen percent of renters said they relied on cash gifts from family to pay rent. About 13 percent reported withdrawing money from retirement funds early to cover housing costs, while 12 percent said they had reduced contributions to their retirement savings, prioritizing immediate expenses over long-term financial security.

Other measures taken to afford rent included receiving government assistance (18 percent); living with parents, family, or friends to save money (14 percent); receiving nonprofit assistance (7 percent); selling stock investments (7 percent); using an inheritance (5 percent); and selling cryptocurrency investments (5 percent).

Redfin noted in a study last month that less than one-third (32.1 percent) of renters pay under $1,000 in monthly rent, the lowest figure on record. It was down from 35.2 percent in 2022 and 50.4 percent in 2012.

The brokerage firm also found in separate studies in recent months that U.S. rents have flattened over the past year, though they remain significantly higher than pre-COVID-19 pandemic levels.

Rental prices have surged faster than wages, making it increasingly difficult for many Americans—particularly those with lower incomes—to afford housing.

“Rents remain stable nationally, but could look very different depending on where you live in the country,” Redfin Senior Economist Sheharyar Bokhari said last month. “On the East Coast and in the Midwest, there hasn’t been as much building activity, so asking rents are rising. Meanwhile, if you’re in a Sun Belt city where construction boomed following the pandemic, rents are now falling pretty fast.”

A Redfin analysis from October found that the median U.S. asking rent rose by 0.6 percent year over year in September to $1,634 but was down by 0.2 percent month over month.

East Coast and Midwestern metros such as Washington—which posted the biggest rent increase at 12 percent year over year—and Cleveland, Ohio, saw significant rent hikes. In contrast, Sun Belt cities such as Jacksonville, Florida, experienced the largest decreases, with rents falling by 11.3 percent.

Despite the challenges, renting remains a popular choice because the affordability crisis is even more pronounced in the home-buying market, the company found.

The same Redfin analysis noted that the number of renter households is growing three times faster than homeowner households, largely because the cost of buying has increased faster than the cost of renting.

Rental affordability may improve as more newly constructed apartments enter the market, Redfin said.