Spending Your Whole Paycheck on Rent

HOUSTON – (By Dale King, Realty News Report) – Renting has often been considered a feasible alternative for individuals or households with insufficient cash on hand to buy a house or less than adequate annual income to make the jump to home ownership.

But leasing a dwelling isn’t always a cakewalk. In fact, a survey by Seattle-based real estate brokerage Redfin finds that just over one in five renters (22 percent) in the U.S. say they use up all of their regular income just to pay their rent.

The Redfin-commissioned survey conducted by Ipsos in September 2024 determined that renters who found themselves cashless in Seattle must – and do — find other ways to bring in the bucks needed to survive — using any of at least a dozen different techniques.

Working a second job is a fairly common way for renters to pay housing costs, with 20 percent of folks who lease their domiciles citing that method to keep their heads above water. Nearly the same share (19 percent) say they have worked a job they hated to cover the periodic rent payments.

One in seven renters (14 percent) have used a cash gift from family to make the payment. Renters also report dipping into money that was earmarked for retirement to pay their housing costs. In addition, 12 percent had to contribute less than they would normally deposit into retirement savings.

The survey of folks who rent their residences also listed other procedures they’ve used to pay the monthly nugget:

Received assistance from the government, 18 percent.
Had previously lived with a parent/family/friends to save money, 14 percent.
Received assistance from a non-profit organization, 14 percent.
Sold stock investments, 6 percent.
Inheritance, 5 percent.
Sold cryptocurrency, 5 percent.

Forty-five percent of respondents said they earmark a portion of their regular income for rent payments.

While U.S. rents have flattened out over the last year, the periodic payments are much higher than they were before the pandemic, says the Redfin report. Because rental prices have surged faster than wages, it’s more difficult than it used to be for Americans to afford rentals, particularly lower-income folks.

Rental affordability may improve in the near future, the survey adds, with prices already showing signs of losing steam as more newly constructed apartments come on the market.

“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,” says the Redfin document. A separate analysis by the brokerage 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.

The findings in this report were drawn from a survey of 1,802 U.S. residents aged 18-65. This analysis focuses on the 894 renters who answered this question: Which of the following actions have you taken, if any, to help afford your rent payments? Respondents could select all responses that applied to them from a list of supplied options.

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