By Suzanne De Vita

Incomes are not keeping pace with rents.

More earnings are needed for rent than in years past—now 29.1 percent of the median monthly income, versus the 25.8 percent needed prior to the recession, according to an analysis recently released by Zillow. The difference equals $1,957 more than if the share had stayed the same.

Homeowners, however, are not allocating more of their income to a mortgage, the analysis shows. A mortgage accounts for 15.4 percent of the median monthly income now, versus 21 percent prior to the recession—$3,289 in savings.

The discrepancy has implications for renters, says Dr. Svenja Gudell, chief economist at Zillow.

“In most markets, current renters are at a disadvantage compared to years past because paying the rent takes up a much larger share of their income than it did before,” Gudell says. “For many people, that can mean less cash to put toward paying off student debt, building an emergency fund, or saving for retirement. For those hoping to buy a home, it could be a significant part of their down payment. For parents, it could mean additional childcare or a family vacation. This is another example of how much worse rent affordability has gotten.”

Monica Tobon Headshot
Phone: 954-254-1515
Dated: January 8th 2018
Views: 22
About Monica: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

New $25K homestead property-tax break on Nov. 6 ballot - TALLAHASSEE – June 18, 2018
US Tax on Imports and Real Estate - If you’ve read the news in
GL Homes DAKOTA - Have you seen a GL Home? 
Should retirees pay off the house early? - NEW YORK – June 6, 2018

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

United Realty Group
1402 Royal Palm Beach Blvd #700
Royal Palm Beach, FL