Nearly one-third of American households are cost-burdened: report

They are spending more than 30% of income on housing

TRD New York /
Jun.June 19, 2018 11:37 AM

(Credit: Getty Images and Wikipedia)

Nearly 40 million American households were cost-burdened in 2016, meaning that they spent more than 30 percent of their incomes on housing, according to a new report.

Though that represents a decrease of 800,000 households from 2015, renters haven’t seen much improvement since the recession, according to Harvard University’s Joint Center for Housing Studies’ “State of the Nation’s Housing.” The share of renters who were cost-burdened in 2016 was 47 percent, down only slightly from 2011’s peak of 51 percent, MarketWatch reported. According to a separate report released by New York University this month, 55.7 percent of low-income households in New York City were moderately or severely rent burdened in 2016, meaning that they paid between 30 and 50 percent of their income on rent.

The Harvard report shows that housing construction is slowing down after growing each year since 2008. Rising material costs, shortages in skilled labor, a shrinking pool of development sites and other factors are contributing to the decline, which only further exacerbates the shortage of affordable housing.

Though unemployment is down and competition for housing is fierce, inequality remains a significant challenge. According to the report, the homeownership rate among African Americans has increased since the foreclosure crisis but remains near all-time lows. Since 1994, the homeownership rate among African Americans has increased only .3 percent, compared to 2.2 percent for white households. There’s a 29.2 percentage-point gap between the rate for whites and blacks. [MarketWatch] — Kathryn Brenzel


Related Articles

arrow_forward_ios
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
Marwan Kheireddine (inset), Jennifer Lawrence and 400 East 67th Street (Getty, Compass, BDL Accelerate)

Jennifer Lawrence’s Upper East Side PH sold at 37% loss

Jennifer Lawrence’s Upper East Side PH sold at 37% loss
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
111 Leroy Street and 817 Fifth Avenue (StreetEasy, Google Maps)

Luxury deals plummet in Manhattan — again

Luxury deals plummet in Manhattan — again
From left: Jared Kushner, 715 Park Avenue, Deutsche Bank CEO Christian Sewing, and Rosemary Vrablic (Credits: Kushner by BRENDAN SMIALOWSKI/AFP via Getty Images; 715 Park via Google Maps; Sewing by by Thomas Lohnes/Getty Images; Vrablic by PAUL LAURIE/Patrick McMullan via Getty Images)

Apartment sale to banker for Trump and Kushner probed

Apartment sale to banker for Trump and Kushner probed
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...