The affordability crisis in America’s rental housing market continues to deepen and the latest data confirms it. Harvard University’s Joint Center for Housing Studies (JCHS) released an update to its American Rental Housing Report, revealing a sharp and steady rise in cost-burdened renters across the country. Novogradac’s summary of the findings underscores a troubling reality: millions of Americans are paying more of their income toward rent than ever before, a trend that mirrors the alarming statistics outlined in the National Low Income Housing Coalition’s (NLIHC) 2025 GAP Report.
From shrinking affordable housing stock to rising rents across nearly every income level, this update paints a picture of a nation where renters are increasingly stretched thin and where solutions are failing to keep pace with growing needs.
More Renters Are Cost-Burdened Than Ever
One of the most significant takeaways from the JCHS update is the growing share of renters who are cost-burdened, meaning they spend over 30% of their income on housing.
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More than half of U.S. renter households now fall into this category.
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A growing portion of those renters millions are severely cost-burdened, paying over 50% of their income toward rent and utilities.
This isn’t a new trend, but the speed at which the burden is intensifying is alarming. While affordability challenges have historically impacted low-income renters the most, the cost burden is rapidly crawling into the middle-income brackets.
Households earning between $30,000 and $75,000 are now experiencing affordability struggles once more commonly associated with low-income households. This shift reflects broader economic pressures such as rising rents, inflation, stagnant wage growth, and tight inventory.
A National Shortage of Affordable Rental Units
A central theme in both the JCHS update and the 2025 GAP Report is the persistent and widening gap between affordable rental supply and renter demand, particularly for extremely low-income households.
The GAP Report highlights:
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A shortage of millions of affordable rental homes nationwide
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Increasing competition for the lowest-cost units
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The inability of supply growth to keep up with rising demand
Even when new units enter the market, they often cater to higher-income renters. Meanwhile, older and traditionally lower-cost units are disappearing due to redevelopment, rising operations costs, or increasing rents that push formerly affordable units into higher price tiers.
The result? A growing number of renters are left without realistic housing options within their income range.
The Financial Strain Is Expanding Beyond Housing
As rent consumes a larger share of household income, many renters face shrinking budgets for essential needs. The JCHS report points out that many cost-burdened renters are left with very little residual income after paying for housing.
This means:
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Reduced spending on food, healthcare, childcare, and transportation
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Limited ability to save for emergencies or future goals
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Increased risk of falling behind on payments
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Higher vulnerability to financial shocks
When rent eats up half of a household’s income, even a minor emergency like a car repair can destabilize an entire family’s financial stability.
Why the Affordability Crisis Is Deepening
Several forces are converging to create today’s affordability challenges:
1. Demand for rentals remains strong.
High home prices and high interest rates continue to push would-be buyers into the rental market.
2. Construction costs are rising.
Higher material and labor costs make it more expensive to build new units, especially in the affordable housing sector.
3. Most new development targets higher-income renters.
Luxury and market-rate units dominate new construction, leaving a shortage of lower-cost options.
4. Older affordable units are aging out.
As older properties are renovated or repositioned, they often re-enter the market at higher rent levels.
5. Wage growth isn’t keeping pace with rents.
Even modest rent increases can outstrip increases in household income.
Together, these pressures make affordability one of the most pressing housing policy issues of 2025.
What This Means for Property Managers, Developers, and Policymakers
For Property Managers (including teams like McIntire Kingstone)
Understanding the growing financial strain on renters is critical to:
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Anticipating potential rent-collection challenges
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Managing turnover risk
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Providing clear communication and support to tenants
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Adjusting leasing strategies to meet market realities
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Enhancing reputation through compassion and responsiveness
Tenants who are cost burdened are more likely to seek help, need payment plans, or experience difficulty staying current. Proactive management helps avoid delinquency and improves stability for both tenants and owners.
For Developers
The market is signaling the need for more affordable units, not just luxury builds. Incentives, tax credits, and public-private partnerships may play a crucial role in filling the supply gap.
For Policymakers
The ongoing shortage of affordable rentals underscores the need for:
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Expanded housing subsidies
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Increased funding for affordable development
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Zoning reforms that support multi-family housing
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Preservation programs to prevent loss of low-cost units
Without intervention, the affordability gap will continue to widen.
Conclusion
The JCHS update and the findings of the 2025 GAP Report make it clear: the nation is in the midst of a deepening rental affordability crisis. Millions of households are now spending unsustainable portions of their income on housing, with middle-income renters increasingly joining the ranks of the cost-burdened.
Unless meaningful steps are taken to expand affordable housing, preserve existing units, and support renters, this trend is likely to continue. For property managers, developers, policymakers, and community leaders, now is the moment to engage in solutions that ensure stable, attainable housing for all.