Chad Frantzen’s Post

Rent vs Buy https://lnkd.in/gtXm7QJT Are you still paying your landlord Owning a home may be more realistic than you think. Use my online calculator to see if owning a home costs less than renting.

Rent vs Buy https://lnkd.in/gtXm7QJT Are you still paying your landlord Owning a home may be more realistic than you think. Use my online calculator to see if owning a home costs less than renting.

More than half of U.S. renter households are spending an unsustainable share of their income on housing, wiping out affordability gains made over the past decade. According to a recent report from Apartment List, using U.S. Census Bureau data, 51.8% of renters were cost-burdened in 2023, up from 48.4% in 2019. GlobeSt.com #affordable #housing #renters https://lnkd.in/gCqQNMZB

Despite an uptick in new housing supply and falling rents in some markets, affordability has worsened. Analysts attribute this to the rapid rent spikes of 2021 and 2022, which outpaced wage growth and left a record 22 million renter households paying more than 30% of their income on housing. https://lnkd.in/e9n5wh8c

The number of US renters facing affordability issues hit 51.8% in 2023. These households are spending an unsustainable share of their income on housing, wiping out affordability gains made over the past decade. https://lnkd.in/eyzukyXe #affordablehousing #affordablehousingfinance #communityimpact

More bad news for the affordable housing space. While the rental market remains strong, the lowest-income households are left with fewer and fewer options. Affordability is getting worse.

In 2023, the median rent-to-income ratio across all U.S. households was 31.0%. A decade earlier, in 2013, that ratio was 30.8%. In 2011, it was even higher at 31.9%. This is one of the key points often overlooked in discussions about today’s affordable housing crisis. Despite significant rent growth over the past several years, the typical household is still spending roughly the same proportion of their income on rent as they were more than 10 years ago. This isn't to downplay the real affordability challenges in today's rental market; however, the issue is more complex and bifurcated than many realize. At the upper end of the affordability spectrum are renters in professionally managed properties, who typically spend around 20% or less of their income on rent. At the other end are those facing severe affordability pressures—“renters by necessity”—whose incomes haven’t kept up with rent increases and are becoming increasingly squeezed with each rent payment. While the median rent-to-income ratio has held steady over the past decade, the affordability gap has widened. Renters at the top end are managing just fine, while those at the bottom are feeling the strain more than ever.

U.S. Renters Face Housing Affordability Crisis as Nearly Half Spend Over 30% of Income on Rent According to the latest U.S. Census Bureau data, 49.7% of U.S. renters are now spending more than 30% of their income on housing costs. This figure highlights a worsening housing affordability crisis, where rent increases are outpacing wage growth across the country, especially in high-cost urban areas like New York City, where many renters are forced to allocate over half of their income to rent alone. The impact of this affordability issue is not evenly distributed. 56% of African-American renters and 53% of Hispanic renters are spending beyond the 30% threshold, compared to 47% of white renters. This disparity reflects deeper concerns about wage inequality and limited access to affordable housing for minority communities. For the first time in a decade, rent increases have outpaced home price growth, with rents rising 3.8% between 2022 and 2023. Without significant policy reforms or increased construction of affordable housing units, this trend is likely to continue, putting further strain on low-income households and limiting their ability to save, invest, or plan for the future. This growing rental burden poses critical questions for policymakers, developers, and the real estate industry at large. #realestate #housingmarket #rentalmarket #affordablehousing #housingcrisis

Housing starts fell 3.1% in October, its second consecutive monthly decline. Starts began on residential units at a 1.311-million annual rate, or 7.7% below last year’s pace. The annual rate of single-family starts in October was 6.9% below September’s rate but, at 970,000 units, still 2.4% ahead of last year’s pace. New Residential Construction, Census Bureau, November 19, 2024. https://bit.ly/3Zndpai

Housing starts fell 3.1% in October, its second consecutive monthly decline. Starts began on residential units at a 1.311-million annual rate, or 7.7% below last year’s pace. The annual rate of single-family starts in October was 6.9% below September’s rate but, at 970,000 units, still 2.4% ahead of last year’s pace. New Residential Construction, Census Bureau, November 19, 2024. https://bit.ly/495rfBu