Renters Growing Increasingly Concerned About Affordability
By Kelly Leighton | Sept. 1, 2022 | 2 min. read
Close to 60% of renters saw their rents rise in the last year, according to a new survey from Freddie Mac.
Additionally, 32% had their rents increase by 10% or more, with 6% receiving a 30% or more rent increase. Just 2% saw their rents decrease. More than half (57%) of renters who had a rise in rent said they were either extremely or somewhat likely to miss a rent payment. While rents were on the rise, so were wages, but on a much smaller scale. Just 38% of renters saw their wages increase and of those who received a raise, 32% said it wasn’t enough to cover their increased rent.
For renters who were planning to become homeowners, plans have shifted for most. Nearly two-thirds said their plans have changed, with 73% reporting they are either significantly less likely or slightly less likely to buy, while just 28% said they are more likely. Half of renters said high home prices are preventing them, while 39% said they cannot save enough for a down payment and 34% said higher interest rates are preventing them from buying.
It’s not just higher rent prices impacting consumers. With 96% reporting they were impacted by inflation over the past year, the majority (66%) said increased costs for groceries and household goods are affecting them. Transportation costs also had an effect, said 54%, while 51% said eating out. About half of consumers reported spending less on non-essential items, and 44% are saving less to help offset inflation. However, 20% of respondents said they sometimes don’t have enough for basics until their next payday, while 41% said they live paycheck to paycheck. A possible recession in the next year is a concern to 84% of respondents, while 77% said rising interest rates are causing them to worry.
Topics
rentersSubscribe To JustListed Daily Emails
You’ll be the first to know about real estate trends and various legal happenings. Stay up-to-date by subscribing to JustListed.
Member Discussion