Nearly Half of U.S. Renters Struggle with Housing Costs, Disparities Across Racial Lines

Nearly half (49.7%) of renter households in the United States were cost-burdened in 2023, spending over 30% of their income on housing. This troubling statistic, drawn from the 2023 American Community Survey (ACS), highlights the growing strain of housing costs on millions of Americans, newly released data from the U.S. Census Bureau reveals.

Over 21 million of the 42.5 million renter households in the country faced this financial pressure, with the median cost-to-income ratio remaining steady at 31%. However, the burden varies significantly across racial groups. Among Black or African American renter households, a staggering 56.2% spent more than 30% of their income on housing. Hispanic renters also faced disproportionate costs, with 53.2% being cost-burdened, while 46.7% of White renters and 43.4% of Asian renters experienced similar struggles.

“Housing costs have continued to rise, and the strain is especially evident among racial minorities,” said Molly Ross, a U.S. Census Bureau survey statistician. Renters saw a median increase in housing costs from $1,354 to $1,406 between 2022 and 2023, further exacerbating financial challenges.

The report also sheds light on severe housing burdens, with 30.6% of Black renters and 28.8% of renters identifying as “Some Other Race” spending over half of their income on housing. These figures underscore the ongoing economic divide, particularly in communities of color, where the cost of living remains unsustainable for many.

In contrast, homeowners fared better, with a median housing cost-to-income ratio of 21.1% for those with a mortgage and 11.5% for mortgage-free homeowners. Nonetheless, 18.8 million homeowners still exceeded the 30% income threshold for housing costs, highlighting that affordability challenges extend beyond the rental market.

The U.S. Census Bureau’s release offers a stark reminder of the persistent racial disparities and rising housing costs affecting millions of Americans. As the nation grapples with ongoing economic challenges, addressing housing affordability has become a critical issue for policymakers.