Nearly half of renters in the U.S. – over 21 million households – spent more than 30% of their income on housing in 2023, according to new Census Bureau data released Thursday.
The bureau said that the U.S. Department of Housing and Urban Development (HUD) considers households cost-burdened when more than 30% of their income is spent on rent, mortgage payments, and other housing costs. The bureau also said the data shows the amount of a rented household’s income that goes toward housing costs differs by race.
"Housing costs rose between 2022 and 2023 for both homeowners and renters. The median cost of housing for renters rose from $1,354 to $1,406 (after adjusting for inflation)," said Molly Ross, a survey statistician with the U.S. Census Bureau. "And new data from the 2023 [American Community Survey], 1-year estimates show that the share of a rented household’s income that goes towards these housing costs differs by householder race."
Of renters who identify as being only Black or African American, 4.6 million (56.2%) paid more than 30% of their income on housing in 2023.
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Renters of other racial groups were also cost-burdened: 1 million (43.4%) of Asian households; 10.4 million (46.7%) White renter households; 4.8 million (53.2%) Hispanic households; 229,000 (48.8%) American Indian or Alaska Native renter households; and 53,000 (51.7%) Native Hawaiian or Pacific Islander renter households.
HUD says that households that spend more than 50% of their income on housing costs are considered severely cost-burdened.
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Renter households found to fall in this "severely cost-burdened" category included about 2.5 million (30.6%) Black and 1.1 million (28.8%) "Some Other Race alone" renter householders, according to the Census Bureau.
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While the data showed that renters had a higher median housing cost as a percentage of income compared to homeowners, 18.8 million homeowners still spend more than 30% of their income on housing costs.
