A new survey from Redfin found that slightly more than one in five (22%) U.S. renters said all of their regular income goes directly to paying their rent. In order to help make ends meet, working a second job was the most common way cited for renters to pay housing costs, with 20% of renters stating they held additional employment. Nearly the same share (19%) say they have worked a job they hated in order to afford rent.
For the analysis, Redfin commissioned a survey conducted by Ipsos in September 2024, polling 1,802 U.S. residents ages 18-65.
Redfin found that one in seven (14%) renters have used a cash gift from family to pay rent. Renters also report dipping into money that was intended for retirement in order to pay for their housing costs. More than one in 10 (13%) pulled money out of retirement funds early, and 12% contributed less to retirement savings.
U.S. rents have begun to flatten out over the last year, rents are much higher than they were before the pandemic. Because rental prices have surged faster than wages, it’s more difficult than it used to be in order for Americans to afford rentals, particularly lower-income Americans. Rental affordability may improve in the near future, with prices beginning to exhibit signs of losing steam as more newly constructed apartments enter the market.
According to Zillow, the median rent price in U.S. for November 2024 was $2,029, $29 more than November 2023 and $41 less than what was reported in October 2024.
Even though it’s difficult for many Americans to make their rent payments, rental housing has become a popular choice because affordability has become even more strained for people looking to buy a home. A separate Redfin analysis found that the number of renter households is growing three times faster than homeowner households, largely because the cost of buying has increased faster than the cost of renting. Redfin found that the number of renter households rose 2.7% in Q3 2024 year-over-year, to a record 45.6 million. That total is three times faster than the 0.9% increase in homeowner households, which currently stands at a record 86.9 million. The 2.7% increase—representing 1.18 million additional renter households—was the second fastest pace since 2015, only trailing the first quarter’s 2.8% rate.
Click here for more on Redfin’s analysis of the nation’s rental market.
