Zumper reposted this
We just released our Zumper 2024 Annual Rent Report 🎉 Here are 3 of the biggest findings that stood out to me - 1. Renters are now spending 42% of their pre-tax income on rent, the highest on record 2. 61% of renters believe the new American dream has become untethered from home ownership, in large part due to affordability & interest rates 3. Two-thirds of American renters still think we're in a recession, despite the data not actually showing this
Always appreciate your reports. 42% is a lot and would disqualify some tenants from getting an apartment. As a landlord, I look at these numbers when someone applies to rent an apartment. Per an LA Times report- it’s now an established cause and effect - a 5% annual increase in rent yields X amount of homeless persons as more people simply can’t afford rent, especially in large cities. Thankfully, more housing has been provided (and built) in LA - so the homeless population has gone down for the first time. But it’s still a crisis. And this research is in line with the other data that shows rents in LA have now stabilized and remained flat YOY. It’s because after 12 years of big YOY rent growth that has outpaced income growth, it seems we’ve reached a limit.
42% in 2024, 45% in 2025, 48% in 2026...
Wowzers that’s a lot of income gone on rent before anything else. That’s really tough for a lot of families.
CEO at Zumper
2wFull report here for those interested https://www.zumperrentals.com/blog/annual-rent-report-2024/