Unaffordable housing across the board
According to the U.S. Census Bureau, rents are increasing while paychecks are not. Over half of Americans that rent put at least 30 percent of their household income toward rent while roughly 25 percent of renters pay out half of their income to their landlord.
The federal government says housing is unaffordable once it surpasses the 30 percent threshold, putting half of America in the dangerous range of paying more for rent than what the government deems unaffordable, and the ratio of renters in this category is growing.
Homeowners are not faring any better, as 38 percent of homeowners pay over 30 percent of their income on their mortgage while 15 percent spend at least half of their income on their house payment. More homeowners are now in the unaffordable range and this number is also rising, but at a slower pace than renters.
Rents are predicted to continue rising for an unforeseeable period with more homeowners losing their homes to foreclosures, selling their home as a short sale, or simply walking away, mobilizing a growing number of renters.
Unemployment continues to suffer and with one in three Americans saying job instability is a top obstacle to buying a home, it is likely that many renters fears relating to job stability.
As rents rise and mortgages reset, Census Bureau data shows housing is becoming less affordable no matter if one rents or owns.