Some American renters are going to extremes to afford housing, with about one in five saying all of their regular income goes to paying their rent, according to a Redfin survey.
About 20% of renters indicated they are working a second job to pay housing costs, and a similar percentage said they have worked at a place they hate to afford rent. Fourteen percent have relied on a cash gift from family to pay rent, 13% have pulled money from retirement accounts and 12% have reduced their contributions to retirement savings in favor of paying rent.
Renters are struggling despite flattening rents over the past year as rental prices have grown faster than wages. Rents today are much higher than they were before the pandemic, and lower-income Americans are particularly impacted by rental affordability, said Redfin.
However, relief may soon come as more newly constructed apartments come to market and put downward pressure on prices, said the report.
“Even though it’s difficult for many Americans to make their rent payments, renting is a popular choice because affordability has become even more strained for people looking to buy a home,” said the report. “A separate Redfin analysis found that the number of renter households is growing three times faster than homeowner households, largely because the cost of buying has increased faster than the cost of renting.”