Rent Cost Rising Faster Than Wages In Some US Cities

Rents jumped 30.4% nationwide between 2019 and 2023, while wages during that same period rose 20.2%, according to a recent analysis from online real estate brokers Zillow and StreetEasy. The gap between wage growth and rent increases was widest in large cities, including Atlanta; Charlotte, North Carolina; and Miami, Phoenix and Tampa. Other cities where renters are feeling the pinch include Baltimore, Cincinnati, Las Vegas, New York and San Diego. Rent soared during the pandemic as demand rose due to Americans fleeing major urban centers and opting for more space away from neighbors in the suburbs and rural areas. Rent is still increasing, housing experts say, although now at a slower pace. Rent has increased partly because of strong demand from millennials and Gen Z adults who have been squeezed out of the housing market, Zillow’s analysis shows. Many Americans still opt to rent because it’s cheaper than owning a home in major U.S. cities, according to an April Bankrate study.  Rent outpacing wage growth means that many Americans are using an even larger portion of their paycheck for shelter, and often skimping on other necessities like child care, groceries or saving for a down payment on a home.