Increasing Numbers of Cost Burdened Renters

Households are considered cost-burdened when they spend more than 30 percent of their income on rent, mortgage payments, and other housing costs, according to the U.S. Department of Housing and Urban Development (HUD). Households spending more than 50 percent of their income on housing costs are considered severely cost-burdened. Many households are priced out of high-amenity, high-opportunity urban neighborhoods.

In 2023, 31.3 percent of U.S. households were cost-burdened, and nearly half of all renter households experienced cost burdens. This peak represented about 22.4 million renter households, marking an increase of two million households within three years. Within this group, 12.1 million households faced severe cost burdens, which also set a record. Planners play a crucial role in finding solutions to address this pressing issue for millions of Americans.