Rent has steadily been on the rise throughout much of the nation. Now rent has climbed to an all-time high, setting a new record. Rent at as a percentage of income has climbed to 30.2 percent for the second quarter of 2015. It’s the highest rate since 1979, according to Zillow, when such data was first tracked.
According to Zillow, rent affordability has also worsened: 28 of the 35 largest metropolitan areas saw affordability decrease.
“Looking forward, the picture doesn’t look bright,” wrote Svenja Gudell of Zillow. “Rents will likely keep rising at roughly their current pace for at least the next few years, which will lead to continued affordability crunches unless wage growth significantly improves.”
In bigger cities, such as New York, rent as a percent of income can climb upwards of 40 percent. In Los Angeles, it is common to find that residents spend as much as half of their income on rent.