(NewsNation) — Incomes haven’t kept up with the cost of housing in recent years, and according to a new analysis, swing-state renters don’t make enough to afford a typical apartment, but the situation has improved.
Redfin found that the typical swing-state renter household earns roughly $50,267 per year, about 17% less than the $60,633 needed to afford the rent for the median-priced apartment in a swing state.
The $10,365 affordability gap may not sound like welcome news, but it’s an improvement from a year ago when the typical renter household earned 22.1% less ($13,552) than they needed for an apartment, the report said.
Today’s shortfall is also better in percent terms than the last presidential election cycle when the typical swing-state renter household earned 20.6% less ($10,088) than they needed.
But families in some swing states will feel better than others.
Rental affordability has improved the most in Arizona. The typical household there is just 2.6% shy of what they need to afford a median-priced apartment, compared to a 12.4% shortfall during the last election cycle.
Nevada saw the second-largest improvement from four years ago, with the renter affordability gap decreasing to 6.5% from 11.8%.
Redfin said the pandemic homebuilding boom — which boosted apartment supply and put downward pressure on rents — has helped improve affordability.
Even so, voters are still reeling from a period of inflation when rent and grocery prices rose roughly 20% in three years. A recent Gallup poll found housing was second only to inflation in a survey of Americans’ biggest financial worries.
“While the economy has been improving on paper, that’s not what it feels like for a lot of U.S. families. Many renters — especially young people — still feel the rent is too damn high,” said Daryl Fairweather, Redfin’s chief economist.
The typical swing-state renter is still considered “rent-burdened,” meaning they spend more than 30% of their income on housing. Rent is considered unaffordable when it’s above that threshold.
The affordability crisis is especially dire in Pennsylvania, where the typical renter household now needs to spend 42.6% of their income for a median-priced apartment. That’s the highest share of any swing state but still improved from the prior election, Redfin noted.
In one swing state — Michigan — housing has become less affordable since the last election. The income shortfall has worsened from 11.2% to 16.3%. Part of that is due to high renter demand, which has driven up asking rents faster than any other swing state over the last year.
Redfin’s analysis is based on income and rental market data for seven swing states: Arizona, Nevada, Wisconsin, Michigan, Pennsylvania, Georgia and North Carolina.
