Good luck finding rent under $1,000
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America's affordable apartments are disappearing as luxury rentals multiply, according to Harvard researchers.
Why it matters: Renters already burdened by high costs have fewer low-priced options to choose from.
By the numbers: Over the past decade, units renting for under $1,000 a month (adjusted for inflation) fell by around 30%, per a report by Harvard's Joint Center for Housing Studies.
- Meanwhile, a building boom focused on upscale apartments helped nearly triple the number of units costing at least $2,000 a month.
The big picture: A record 22.6 million renter households (50%) are cost-burdened, meaning they spend more than the recommended 30% of their income on housing and utilities.
- That's an increase of 2.2 million households since 2019.
- Nearly two-thirds (65%) of working-age renters can't pay other bills after rent, the center's research shows.
Between the lines: Homebuying is out of reach for many. More people are renting, which has kept rents high even as hikes ease.
- Add to that high prices for land, building materials and labor. "To be profitable, most of these [new] units must command steep rents," researchers wrote in the report.
Reality check: The surge in high-end apartments can still benefit lower-income renters, the researchers noted.
- For one, areas with lots of new construction over the past few years, particularly in the South and West, saw rent increases slow or outright decline.
- And when higher earners move up, older, cheaper units may become available.
What we're watching: With less new construction happening lately, rent hikes could ramp up again, further straining budgets.
