Perhaps you are one of the thousands currently trying to save up for a home while renting. Does it seem like no matter what you cut back on your savings account refuses to budge? Turns out, you are not losing your mind.
Renting rates in America are at its highest ever. The average American is spending approximately 30.2% of their monthly income on rent (HousingWire). Previously, it had been declared that spending 30% of income on rent was deemed acceptable. But as that number begins to creep over that limit, we venture into uncharted territory as this is the most Americans have ever spent on rent.
Keep in mind this is an average. Many areas in the country are paying well above 30% of their income on rent, some into 40%. This number is obviously putting a major hindrance on the growth of the housing market. Renters are spending so much on their current living situation that saving up for an investment such as buying a home is nearly impossible.
When will this percentage return to something more manageable? How can we adapt to this and make the necessary changes? Stay tuned as we follow the rate of renting and its affects on the industry.