In a sobering milestone for the U.S. housing market, rental affordability has officially reached a record-breaking crisis point. According to the latest report from Harvard University’s Joint Center for Housing Studies, millions of Americans are now spending an unsustainable portion of their income just to keep a roof over their heads — a burden that continues to grow year after year.
The Hard Numbers: A Growing Crisis
The report highlights that as of 2023, 22.6 million renter households are now classified as cost-burdened — meaning they spend over 30% of their income on rent and utilities. Even more alarming, 12.1 million households fall into the category of “severely cost-burdened,” where more than 50% of household income goes toward housing costs.
This represents the highest number of cost-burdened renters ever recorded in the U.S., surpassing previous peaks seen in the aftermath of the 2008 housing crisis. Since 2019 alone — just before the COVID-19 pandemic disrupted the economy — an additional 2.2 million renter households have fallen into this financially vulnerable position.
What’s even more concerning is that this issue isn’t isolated to one demographic or income group. The affordability crisis now cuts across nearly every sector of American society.
Middle-Income Earners No Longer Shielded
Historically, low-income renters have been the most susceptible to housing cost burdens. While this remains true, the crisis is now expanding into middle- and even higher-income brackets:
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83% of renters earning less than $30,000 annually are cost-burdened.
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70% of those earning between $30,000 and $44,999 face the same issue.
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45% of households making between $45,000 and $74,999 are similarly burdened.
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Alarmingly, even 13% of renters earning $75,000 or more struggle with housing costs.
This shift reflects how the rapid rise in rental prices has outpaced wage growth across nearly all income levels. What was once considered a safe earning range is no longer enough to guarantee housing stability.
Full-Time Employment No Longer Offers Protection
One of the most alarming trends is the growing number of full-time workers who are also becoming rent-burdened. In 2001, less than 25% of full-time employed renters spent more than 30% of their income on rent. By 2023, that figure had climbed to 36%.
Even among workers in typically stable professions, the strain is felt:
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Personal care and service workers: 55% are cost-burdened.
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Food preparation and serving workers: 54% are cost-burdened.
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Office and administrative support workers: 42% are cost-burdened.
The data paints a clear picture: simply having a job — even a full-time one — is no longer sufficient to escape the growing weight of housing expenses.
A Widespread Geographic Issue
While rental affordability issues have long plagued high-cost cities like San Francisco, New York, and Los Angeles, the current crisis is nationwide. According to the Harvard study, 43 out of 50 states have seen cost-burden rates climb in recent years.
By region, the numbers tell a striking story:
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West: 52% of renters are cost-burdened.
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South: 50% of renters are cost-burdened.
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Northeast: 49% of renters are cost-burdened.
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Midwest: 45% of renters are cost-burdened.
This means that no part of the country is immune — from major coastal cities to smaller towns and rural areas, rent burdens have become an almost universal concern.
Persistent Racial and Ethnic Disparities
The affordability crisis has also further exposed longstanding racial and ethnic inequalities within the housing market. The report shows:
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57% of Black renters are cost-burdened.
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53% of Hispanic renters are cost-burdened.
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By comparison, 46% of Asian renters and 45% of white renters face similar cost burdens.
These persistent disparities reflect systemic challenges related to income inequality, access to affordable housing, and historic discrimination that continue to affect communities of color disproportionately.
The Ripple Effects of Rent Burden
The consequences of this affordability crisis go far beyond rent checks. When a household is spending an excessive portion of its income on rent, it often comes at the expense of other basic needs, including:
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Food and nutrition
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Healthcare and medication
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Childcare and education
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Savings and retirement planning
For many renters, these trade-offs mean greater financial instability, growing debt, and a much higher risk of eviction or homelessness when faced with even a minor emergency. For families with children, the strain can severely limit educational opportunities and long-term upward mobility.
The Pandemic’s Lasting Impact
Although rent relief programs and eviction moratoriums helped protect millions of renters during the height of the pandemic, many of those safety nets have now expired. As rents continue to rise — and pandemic-era supports fade away — many renters find themselves even more financially vulnerable than before.
The Harvard report makes it clear that while pandemic disruptions were temporary, their impact on the rental market may be long-lasting if not addressed with meaningful policy action.
What Can Be Done?
Experts and advocates emphasize that reversing the affordability crisis will require a multi-faceted approach, including:
Expanding Affordable Housing Supply
Increasing the construction of affordable rental units is essential, especially for low- and moderate-income households. Policymakers may need to incentivize affordable development and address zoning laws that restrict multifamily construction.
Strengthening Rental Assistance Programs
Federal, state, and local governments could expand rental assistance programs, including housing vouchers, to help struggling renters bridge the gap between income and rising rent costs.
Reforming Zoning and Land-Use Policies
Outdated zoning regulations limit housing supply in many regions. Reforms that allow for more diverse housing types — including duplexes, triplexes, and accessory dwelling units — could help ease local shortages.
Enhancing Tenant Protections
Stronger tenant protections, including eviction safeguards and rent stabilization measures, can help renters avoid sudden rent hikes and housing loss.
Addressing Income Inequality
Long-term solutions must also include addressing broader economic disparities, such as stagnant wages, unequal access to education, and racial wealth gaps that leave many renters particularly vulnerable.
A Call to Action
The Harvard Joint Center for Housing Studies’ latest findings serve as a powerful wake-up call for policymakers, industry leaders, and the public. Without meaningful interventions, millions of Americans will continue to face untenable financial pressure that jeopardizes not only individual stability but also the broader health of the U.S. economy.
Source: Number of those burdened by rental affordability hits record high – Harvard Gazette