Nearly half of all renters are cost-burdened, spending more than 30 percent of their income on housing.
According to a recent report from ABODO, 47.7 percent of the 43 million U.S. renters fall into this category, and the number is anticipated to increase.
Across generations, 30.5 percent of all millennials are cost-burdened with housing, while 46.5 percent of millennial renters fall into the category. However, the report found that millennials are less likely to be spending 30 percent or more of their income on housing, despite making 20 percent less than baby boomers did, when the boomers were the age of millennials. Millennials are the generation most likely to be renters, at 65.5 percent. Across the country, millennials are paying a median gross rent, which includes utilities and other similar costs, of $980, with a median income of $39,000, meaning the average millennial spends 29.5 percent of their salary on housing.
Generation X found themselves the best-off, with only 16.8 percent housing cost-burdened across households, and 44.1 percent cost-burdened renters. Nearly 38 percent of Generation X are renters, with a median gross rent of $1,050, and a median income of $44,700.
Surprisingly, 49 percent of boomers who rent are cost-burdened, while only 11.6 percent of all boomer households are cost-burdened, so it’s mainly renting boomers facing this challenge. Close to 24 percent of boomers rent, spending a median of $890 on rent, and earning a median $33,000.
In Pennsylvania, more than 40 percent of renters across generations in the Scranton, Wilkes-Barre and Hazleton area are housing cost-burdened, and in the Philadelphia area, more than 45 percent of millennial and Generation X renters are cost-burdened, and more than 50 percent of boomers find themselves spending more than 30 percent of their income on rent.