Rent Devours More of Tenants’ Income Across Nearly Every State

A recent analysis reveals a growing trend in housing costs, showing that 21 states reported a majority of tenant households spent 30% or more of their income on rent and utilities last year, compared to just seven states in 2019. Approximately 22 million renters nationwide are now classified as “cost burdened” by the U.S. Department of Housing and Urban Development, leading to financial strain for essential needs like food and healthcare.

Among presidential swing states, Arizona, Nevada, and Georgia witnessed significant increases in the number of renters exceeding this threshold. Arizona’s rate rose to 54% from 46.5%, while Nevada spiked to 57.4% and Georgia to 53.7%. The findings stem from a Stateline analysis utilizing data from the American Community Survey, set to be released today by the U.S. Census Bureau.

In Arizona, a convergence of low wages, a housing shortage, and a rise in short-term rentals has severely diminished affordable housing options, according to Alison Cook-Davis, associate director for research at Arizona State University’s Morrison Institute for Public Policy. “People across the state are frustrated, believing Arizona was supposed to be more affordable,” she noted.

Recent data indicates that rents in Arizona have surged by 40% to 60% over the past two years, contributing to a staggering 43% increase in eviction filings, totaling 97,000 between 2022 and 2023. Cook-Davis highlighted that the insufficient construction of new apartments and homes in the wake of the late 2000s housing bubble has not kept pace with population growth, exacerbating the housing crisis.

In Nevada, a report from the University of Nevada, Las Vegas, indicated that the Las Vegas area has the highest percentage of cost-burdened renters in the state, at 58.3%. This surpasses major metropolitan areas such as New York City and San Francisco.

Along with Arizona and Nevada, Florida has seen a significant rise in the share of cost-burdened renters, moving from 55.9% to 61.7%. Maine also reported an increase from 44% to 49.1%. Florida now ranks as the state with the highest rate of cost-burdened renters, followed closely by Nevada, Hawaii, Louisiana, and California.

Christopher McCarty, director of the University of Florida’s Bureau of Economic and Business Research, remarked, “Florida isn’t the deal it used to be,” pointing to a lack of higher-paying jobs coupled with rising rental costs.

In contrast, states such as North Dakota, Wyoming, South Dakota, Kansas, and Nebraska reported the lowest rates of cost-burdened renters. Notably, all states except Vermont, Wyoming, North Dakota, and Rhode Island saw an increase in cost-burdened renters since 2019.

Despite the current challenges, Cook-Davis expressed cautious optimism for Arizona and similar states. “If you keep building, eventually this will sort itself out. But that could take years. It’s a slow process,” she added, highlighting the need for a sustained increase in housing construction to alleviate the situation.