Nearly half of all renter households in 2023 spent more than 30% of their income on housing costs, with some racial groups bearing the burden more than others, according to new survey data from the U.S. Census Bureau.
"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, Molly Ross, a survey statistician with the U.S. Census Bureau, said in a statement.
The U.S. Department of Housing and Urban Development considers households to be cost-burdened when they spend more than 30% of their income on rent, mortgage payments and other housing costs.
About 56.2% of Black or African American households spent more than 30% of their income on housing costs. That was the largest percentage of any race group to shell out that much of their income on housing costs. By contrast, 43.4% of Asians fell into that category.
The data, from the Census Bureau's American Community Survey, also revealed that the real median gross cost of renting grew by 3.8%. These costs increased faster than real median home values, which rose by 1.8% in the same period.
This marked the largest annual real increase in rental costs since at least 2011, according to the Census.
The gross rent share of income did not rise nationally in most areas while rental costs spiked, suggesting that additional higher-income renters could have joined the renting population since the number of renters grew from 2022 to 2023.