The latest data from the U.S. Census Bureau’s 2023 American Community Survey highlights a notable rise in the share of income that renters in several states are allocating toward housing costs, with Georgia seeing a 6% increase from 2022 to 2023. Similarly, Arizona experienced a 6.5% increase, and Florida led with an 8.2% rise. Nationally, rental costs, which encompass rent and utilities, outpaced the growth of real median home values for the first time in a decade, marking the largest annual increase in rent costs since 2011.
Despite these significant rental cost hikes, the Census Bureau indicated that rent as a percentage of income did not rise nationwide. This could be attributed to increased earnings among renters or the influx of higher-income households into the rental market. However, the burden remains heavy for many, with nearly half of U.S. renter households spending over 30% of their income on housing in 2023. This cost burden is particularly pronounced among Black and Hispanic households, where 56% and 53%, respectively, are cost-burdened, compared to 47% of White renter households.
Homeownership is also under pressure due to rising homeowners’ insurance costs, which are being driven by factors like climate change, wildfires, and hurricanes. States such as Florida and Texas are seeing especially high insurance premiums, with over a million homeowners in Florida paying $4,000 or more annually for coverage.