ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Research Reveals how High Rent is Eating Away Savings of More Than 50% of American Tenants

More than 12 million Americans are cost-burdened and exhausting their salaries on the necessary expenses.
PUBLISHED MAR 10, 2024
Cover Image Source: Americans are saving little after paying rents (representative image) | Unsplash | Photo by Igor Omilaev
Cover Image Source: Americans are saving little after paying rents (representative image) | Unsplash | Photo by Igor Omilaev

Americans are exasperated with the rising cost of living in the United States and are saving less percentage of their income since they have to cover everyday bills and healthcare with their low wages. According to a recent survey, even if you make up to $150,000, you may still be classified as "lower-middle class" in some locations. The research discovered that in places such as Northern California and Virginia, you would have to earn somewhere between $128,964 and $152,652 to not be considered "lower-middle class." As per the latest report released by the Joint Center for Housing Studies of Harvard University, in 2022, almost half of the renters were disbursing 30% of their paychecks on housing rents. More than 12 million Americans are cost-burdened and exhausting their salaries on the necessary expenses, via CBC. From 2019 to 2022, the share of cost-burdened renters increased by 3.2 percentage points.



 

RentCafe, an apartment listing service, revealed findings of a study that showed how residents of Manhattan in New York have been spending exorbitant amounts on housing rents as compared to their peers in other Americans. Researchers took the help of the income-to-rent ratio and calculated for each city based on how much they are spending as compared to how much they are earning. They also looked at the remaining income (after rent) to check whether the amount could cover the monthly expenses such as grocery, healthcare, utility bills, transportation, and other expenses. This demonstrated actual results and it was shocking to see that most Americans are not saving even a small percentage of their monthly income.



 

They came to the conclusion that Americans do not have much money left after paying for rent and vital expenses. The study was done in 189 different cities in the United States, with Manhattan and Brooklyn topping the list. This means that residents of Manhattan and Brooklyn were spending the majority share of their income on just rent, with a minimum amount left to satisfy their expenses, let alone savings. Going further, Boston and Auburn, Alabama were found facing unacceptable conditions where they did not have enough money left to fulfill even their basic requirements. Auburn, Alabama ranks worse when it comes to spending on utility, food, and healthcare. 



 

Cities in the United States have always been demeaned for their high rent costs but some cities offer people a decent lifestyle. One of them is Silicon Valley’s Sunnyvale in California which is considered one of the best cities in the US as renters there can afford expenses outside rent due to the higher wages. After Sunnyvale, Americans are seen living in Surprise, Arizona followed by Arlington, Virginia. As per the study results, it has been noted that the majority of cities in the southeastern part of the country are considered much more affordable than the others. Surprisingly, 9 of the cities are listed in the top 30 cities list where people can take out a major proportion of their income after fulfilling their needs.

MORE ON MARKET REALIST
The sharks did not expect the product to taste as good as it did, considering what it was made from.
4 hours ago
The designer was also commissioned by top brands and worked for the royal family.
5 hours ago
The host had a look of bewilderment on his face which was absolutely hilarious.
6 hours ago
Things did not seem to be going well for the entrepreneur due to her high energy.
9 hours ago
The guest might have had high expectations, but they were quickly brought down to earth.
10 hours ago
The contestant was unable to contain her excitement and hugged the model.
1 day ago
Two of the players got it right, and while the player who lost didn't mind, fans were not satisfied.
1 day ago
Lisa celebrated her birthday in style with a perfect two-card guess to win the big prize.
1 day ago
Rick Harrison did what he could to console the guest who said that he had lost faith in NASCAR.
1 day ago
Both the guest and the expert were fascinated by how well the automaton worked.
2 days ago
One of the entrepreneurs broke down in tears, explaining all the struggles they had to go through.
2 days ago
She couldn’t believe it when her doll was appraised at a five-figure sum, and laughed in disbelief.
2 days ago
Ken Jennings truly has embraced "Jeopardy!" in every way possible at this point.
2 days ago
The comedian was impressed by the simplicity of the product and amused by the pitch.
3 days ago
Harrison usually makes smart deals on the show, but this vintage car buy turned into a costly mistake.
3 days ago
Had she started the game in a better way, she might have won the five-figure prize money.
3 days ago
Barbara Corcoran made the exact same offer, and she wasn't happy about being rejected.
4 days ago
The guest believed that it was worth a modest amount of money, but that was clearly not the case.
4 days ago
With James Holzhauer in the lead, Amy Schneider and Andrew He decided to joke around.
4 days ago
Barbara Corcoran told the founders that she had never seen Greiner so passionate.
4 days ago