DENVER (KDVR) — Nationally, nearly half of Americans are now officially cost-burdened due to high rental prices, according to an analysis of rental and income data by commercial real estate firm MyElisting.
Fifty-one percent of Americans are spending more than 30% of their income on rent. Common financial wisdom says households should spend no more than 30% of their pre-tax income on household costs. Any more than 35% and the household is deemed “cost-burdened.”
The number of cost-burdened renters does not reflect only rental prices but income levels as well.
As one of the nation’s most expensive rental and homeownership markets, it’s not a surprise that Colorado is at the top of the list for its share of cost-burdened households.
Colorado is tied for the sixth-highest share of renters paying more than 35% of their income on rent. It is tied with Mississippi and New Jersey, with 43% of renters officially cost-burdened.
Florida is the state with the most. Just under half, 49%, of renters are cost-burdened in the Sunshine State.
Renters have far better luck in interior states.
Kansas, Kentucky, New Mexico and Ohio are tied as the states with the lowest shares of cost-burdened renters. In each, only 16% of renters spend more than 35% of their income on rent.
Arkansas, Iowa, Montana, North Dakota, South Dakota and Wisconsin round out the 10 least cost-burdened rental states.