Nearly 25% of Indy renters spend more than half their paycheck on rent
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Nearly a quarter of renters in the Indianapolis area are spending more than half of their household income on housing, according to new data from the Census Bureau.
Why it matters: An excessive rent burden can make it harder to afford other basic needs, like groceries and transportation — and to save for a down payment on a home.
Context: Households are considered cost-burdened when they spend more than 30% of their income on housing costs, according to the U.S. Department of Housing and Urban Development.
- Those spending more than 50% of their income on housing costs are considered severely cost-burdened.
By the numbers: Of the 282,630 renters in the Indianapolis-Carmel-Greenwood metro area, 24% of them spent more than half of their household income on rent last year.
- Nationwide, just over a quarter (25.6%) of U.S. renters are in the same boat, according to the 2023 American Community Survey.
- In September, the median rent was $1,260 in Indianapolis, $1,998 in Carmel and $1,536 in Greenwood, per Redfin.
Zoom in: Hoosiers are dealing with rent burdens while also having a harder time covering their everyday expenses.
- According to the U.S. Census Bureau's Household Pulse Survey, 42% of adults living in Indiana reported difficulty paying everyday expenses. That percentage is the sixth-highest in the country.
- In Carmel, the lack of affordable rental units was recently identified as a key problem by a housing task force that wants to make the Hamilton County community more accessible.
Zoom out: Florida is home to several especially rent-burdened metros, including Port St. Lucie (where 36.6% of renters are spending more than half their income on rent), Cape Coral (35.1%) and Palm Bay (34.3%).
- That could be due to the state's large number of retirees, who may have relatively less current income.
- On the other side, the least rent-burdened areas include Ogden, Utah (17.9%), northwest Arkansas (18%) and Wichita, Kansas (18.7%).
Between the lines: Geography is only part of the equation here — race plays a role, too.
- Nationwide, 30.6% of Black renters are spending more than half their income on rent, compared to 23.4% of white renters.
Stunning stat: The real median gross cost of renting — that's rent plus utility/energy costs — grew faster annually (+3.8%) than real median home values (+1.8%) last year for the first time in a decade, the Census Bureau points out.
The bottom line: It's tough out there to be a renter.