The 49.7% threshold: a housing affordability crisis

The Census found that around 49.7 percent of renters spend more than 30 percent of their income on housing, a threshold widely used to define cost burden.

Housing is typically the largest expense for most households, and when rent consumes too much income, it can crowd out spending on essentials.

Spending more than 30 percent of income on housing is generally seen as a cost burden by economists, while spending more than 50 percent is a severe cost burden.

A cost-burdened nation: HUD/Comprehensive Housing Affordability Strategy data

The HUD/Comprehensive Housing Affordability Strategy data found a significant share of renters nationwide are cost-burdened, with the problem most concentrated in high-cost states and urban and coastal regions.

Some states have price levels far above the national average, bringing along higher rents even as income fails to keep pace with the cost of living.

The most strained states: Oregon, Connecticut, New York, and New Jersey

All of them have more than half of renters spending more than 30 percent of their icnome on housing: Oregon, Connecticut, New York, and New Jersey came shortly after in terms of the share of renters spending more than 30 percent of their income on housing.

Higher income areas also typically carry a much higher cost of living overall, Kevin Thompson, CEO of 9i Capital Group and host of the said.

Consequences of the housing affordability crisis

The consequence is many people are being pushed further away from where they work just to find affordable housing, and whatever savings they gain are often eaten up by longer commutes and higher gas prices.

The lower cost-burden states, relatively, tended to concentrate in the Midwest and South, where rents and prices in general are less expensive.

Rent growth and housing supply

Rents are rising fastest in the Midwest and Northeast, where limited housing supply has kept upward pressure on prices.

In 2025, rents in the Midwest increased by about 6.1 percent, while the Northeast saw gains of around 4.6 percent, according to Rentometer.

Rent growth has slowed or shifted downward in parts of the South and West, where a surge in new apartment construction has increased supply.

In 2026, rents declined by 1.3 percent in the South and 2.2 percent in Mountain-region states, according to As rent increases outpace wage growth, many Americans are also facing limited housing supply in some high-demand areas.

Younger renters hit hard

Younger renters are being especially hit hard as recent graduates entering the workforce deal with lower starting wages than their elders .

That has led to many looking for roommates and delaying homeownership altogether, experts say.

The impact on wealth-building

Every dollar over 30 percent of income going to rent is a dollar not going to a 401(k), an emergency fund , or a down payment.

These renters aren't just stretched. They're locked out of the wealth-building tools everyone else takes for granted.