Americans Need an Extra $168 a Year to Keep Up with Rising Rents
Rents are rising fast, and Americans will need to devote more of their income to keep up in 2017, online real estate firm Zillow reports.
Zillow recently looked at the data, and found that U.S. renters would need a raise of about $168 a year in 2017 just to keep up with expected rent increases over the next 12 months.
Renters in Seattle, Los Angeles, and Boston have it really bad. They will need need annual income increases of more than $1,000 to avoid dedicating more of their paychecks to rent.
In several major metros, the share of income needed to pay rent already surpasses the general rule of not spending more than 30 percent of income on housing.
But in nearly all large markets, the median rent requires a larger share of income than it did before the housing bubble and bust.
Housing affordability is still a significant issue for renters, who have experienced rising rents for years.
In some markets, the median rent requires more than 40 percent of the typical household income.
However, rent appreciation is slowing, and rents are predicted to rise just 1 percent over the next year.
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