ST. PETERSBURG, Fla. — Affording rent continues to be a strain for many, and a recent survey shows a sizable portion of Americans say they use all of their paycheck to keep a roof over their head.
The survey was commissioned by Redfin, a real estate brokerage, and took responses from more than 1,800 U.S. residents between the ages of 18 and 65.
Of those who responded to the survey, data shows just over one in five, or 22%, of renters in the U.S. say "all of their regular income goes directly to paying their rent."
Another 20% of renters said they are working a second job to help pay for rent. Other survey takers said they've used a cash gift from family to pay rent, about 14%. More than 13% of respondents said they took money out of retirement funds early and 12% said they contributed less to their retirement savings.
Redfin says that while rents are no longer skyrocketing like they once were, rent prices are still "much higher" than before the COVID-19 pandemic. And, because rental costs have grown faster than wages, more Americans are finding it difficult to afford rent.
Some relief could happen in the future for affordability, as Redfin says there are signs prices are "losing steam" with more new apartment constructions hitting the market. A recent report from Zillow said rent growth has remained "stable," with average rent prices about 3.3% higher than this time last year. Since the beginning of the pandemic, rents have increased by about 33.5%, according to Zillow.
"Even though it’s difficult for many Americans to make their rent payments, renting is a popular choice because affordability has become even more strained for people looking to buy a home," Redfin said in part, noting it found the number of renter households is growing three times faster than homeowner households. This is largely due to buying costs outpacing rental costs.
