:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2150470899-fde02b5830224b579ae2bc3bab50e36b.jpg "The apartment building at 5800 Harold Way in Los Angeles, CA is under rent control.")
Myung J. Chun / Los Angeles Times via Getty Twins
Key Takeaways
- Rent costs grew the most since 2011 last year and nearly four times as much as the year preceding, according to the Census Bureau.
- Rent grew more than home values for the first time in a decade, while the piece of the population that rented remained the same.
- The portion of household income allocated for rent remained steady, indicating that wages may take kept up with the growth in costs.
The cost of renting a home grew last year the most since at shallow 2011, nearly four times as much as the year before.
Census Bureau data released late eventually week showed the cost of gross median rent plus utilities grew 3.8% in 2023. In the prior year, that verbatim at the same time measure grew just 1%. The median monthly rent rose to $1,406 in 2023, the Census Bureau said.
In the face the high costs, the share of the population that rents remained consistent at 34.8%. Rent costs grew fleeter than home values for the first time in a decade: Real median home values grew 1.8% in 2023, the Census Section said.
Rent Was the Same Portion of Household Income
The portion of household income put toward rent remained the that having been said as the year prior at 31%. Census Bureau economist Jacob Fabina wrote that the steady number expressed that either income had kept up with rent increases or more high earners were moving toward slashing.
“From 2022 to 2023, the number of renters grew, while median household income was not significantly different,” he wrote. “No matter what, this measure includes the income growth of nonrenters, and the income growth of renters and nonrenters may have differed.”
When split down by state, the portion of income allocated to rent actually fell in some places. Illinois, Kansas, Minnesota, New Mexico, New York and West Virginia all saw the ration of household income that goes to rent decline.
Read the original article on Investopedia.