Summary
Over the past 20 years, the cost of renting a home in the U.S. has risen significantly. Despite an increase in the total number of homes, the available vacant homes have not increased much, causing rent prices to rise sharply. The pandemic further accelerated rent costs, though recent construction in some areas has helped stabilize prices.
Key Facts
- From 2005 to 2024, the U.S. added over 22 million homes, but only increased vacant homes by about 570,000.
- The median rent rose from $728 in 2005 to $1,487 in 2024, adjusted for inflation.
- The shortage of homes is between 4 and 7 million, contributing to high rent prices.
- Since the pandemic, rent increased by 36.2%, while the income needed to afford rent rose by 34.9%.
- Renters in Florida experienced over a 50% increase in rent post-pandemic.
- Almost half of all renters spend more than a third of their income on rent, being cost-burdened.
- In Austin, Texas, renters pay the lowest share of their income on rent, at 18.7%.
- Rental price growth has slowed nationally, with the typical asking rent at $2,007 as of last month.
