Rent prices have risen by 22% since Biden and Harris took office

The Rental costs have increased by 22% since the Democratic Biden-Harris The government took office in January 2021, according to data from the US Federal Reserve Bank of St. Louis.

Likewise, it has increased in recent months. According to the Consumer Price Index (CPI), rent has increased by 0.4% in the last four months, reaching an annual increase of 5.4%. The increase in this cost is one of the highest in the last 12 months.

On the other hand, an independent study by the real estate website Zumper found that Rent for one- and two-room apartments rose by 1.2%with national average rents of $1,504 and $1,865 respectively.

The majority of the population does not earn enough to pay the rent

A Redfin report revealed that only 39% of renters in the US earn enough money to pay the rent for an averagely expensive apartment.

The study details that the A typical US household earns $11,400 less than the total amount needed to pay the rent.

According to the report’s calculations, “the average American who pays rent to have an apartment earns an estimated $54,712 per year.” That’s 17.3% less, or $11,408, than the $66,120 a renter must earn to pay the monthly rent for an average-priced apartment in the United States ($1,653).”

A rent is “affordable” if a tenant does not spend more than 30% of his income

The report states that the price of a “An apartment is affordable if the tenant does not spend more than 30% of his income pay rent, which is the same as if their annual income was at least 40 times their monthly rent.”

The amount renters need to earn to afford an average-priced apartment is at its highest level since October 2022. Increase of 0.8% year-on-year and 22.9% since May 2019.

Sheharyar Bokhari, chief economist at Redfin, commented: “Many renters in the U.S. are and will continue to be burdened with the cost of a roof over their heads, and unlike homeowners, they are not building wealth through rising property values.”

The worst places to rent

The best Expensive cities to rent an apartment are New York and Miami. At these locations a “The typical tenant earns about 40% less than he or she has to pay for the apartment.”

The study finds that New York is the place with the highest rents. This year, rents are 9.2% higher than last year. Additionally, the average renter there earns an estimated $67,358 per year, 43.5% less than the $119,120 that one would have to pay for an average-priced apartment.

New York is followed by Miami (tenants earn 42.2% less than they would need to pay rent), followed by Boston (38.7% less), Los Angeles (36.1% less) and riversideCalifornia (30.8% less).