More than one-fifth of U.S. renters report spending their entire regular income on rent payments, pointing to the severe strain of housing costs on American households, according to new survey data from Redfin.

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The September survey of 894 renters reveals widespread financial compromises to meet housing costs. Twenty percent of respondents work second jobs to afford rent, while 19% report staying in jobs they dislike to maintain housing payments.

Financial pressure has forced many renters to make difficult choices about their long-term financial security. Fourteen percent relied on family cash gifts for rent payments, while 13% tapped retirement funds early.

Another 12% reduced retirement contributions to cover housing expenses.

The findings align with broader housing affordability challenges documented in the 2023 American Community Survey. Census Bureau data shows nearly half of U.S. renter households were cost-burdened last year, according to a report issued by CNN, spending over 30% of their income on housing. 

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The median rental cost rose to $1,406 monthly in 2023, marking a 3.8% increase that outpaced the growth in home values.

The burden falls disproportionately on minority communities. Over 56% of Black households and 53% of Hispanic households were cost-burdened in 2023, exceeding the national average of 49.7%. Among Black households, 30.6% qualified as severely cost-burdened, dedicating more than half their income to housing.

Rising insurance costs compound the affordability crisis, particularly in areas prone to natural disasters. Census data reveals that 5.4 million of the nation’s 85.7 million homeowners paid over $4,000 annually for insurance in 2023, with Florida, Texas, California, New York and Louisiana residents facing the highest rates.

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While rental rates have stabilized recently, they remain elevated compared to pre-pandemic levels. Some relief may arrive as newly constructed apartments enter the market, though affordability challenges persist as rental costs have outpaced wage growth.

Despite the difficulties, renting remains increasingly common.

Redfin analysis shows renter households growing at triple the rate of homeowner households, largely because purchasing costs have escalated faster than rental rates. According to Realtor.com’s analysis of the 50 largest metro areas, buying a starter home was 61.3% more expensive than renting as of July.

The housing affordability crisis has captured attention in Washington. The incoming administration has signaled plans for broad housing market reforms, while outgoing officials, including Vice President Harris, have proposed measures like down-payment assistance programs. 

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