According to a new report published by researchers at Florida Atlantic University (FAU) and two other universities, the average renter in 11 U.S. markets must earn a six-figure annual salary to avoid rent increases.
The study at the end of April indicated that the highest salary necessary to avoid belonging to this category of “rent-burdened renters” was $131,563 in San Jose, Calif., according to an article in WFLX.
Similarly, the average renter also needs to earn at least $100,000 annually in New York, Miami, San Francisco, San Diego, Oxnard, California, Boston, Los Angeles, Bridgeport, Connecticut, Honolulu, and Riverside, California.
According to the researchers, the Sunshine State continues to dominate the list of the nation’s most valuable markets, with Cape Coral-Fort Myers, Miami, North Port-Bradenton, and Deltona rounding out the top ten.
Residents who consider themselves rent-strained or suffocated spend 30% or more of their income on rent and therefore have difficulties paying for other necessities, such as food and medicine, as the above text indicates. In the case of those who spend 50% or more they are “severely burdened by rent”.
Wages and rents in Miami, USA
FAU economist Ken H. Johnson noted, “Not a lot of people are making that money.”
This data illustrates exactly what we have said about the current housing affordability crisis. Rents are not falling dramatically, so until income increases, consumers in most parts of the country will continue to do without basic necessities.”
For his part, researcher Shelton Weeks, from Florida Gulf Coast University, stressed that it is necessary to build more rental housing to keep up with the pace of demographic changes across the country.
He warned, “The rent crisis will continue until then in the Sun Belt states, as they are seeing a significant increase in their population.”
Places in the US where the cost of housing remains low, according to research, are Wichita, Kansas, where the average renter needs to earn just under $40,000; McAllen, Texas is the second lowest renting area, requiring an annual salary of less than $48,000.
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