With homeownership currently out of reach for many first-time homebuyers, a new survey by Redfin shows that a big chunk of take-home pay is going to rent.
The survey revealed that one in five renters are using all their paycheck to cover rent and 20% are working a second job just to make ends meet.
Some surveyed said they have taken a job they don’t like or have asked family for help.
Some renters are borrowing from retirement accounts or are reducing their contribution amount, Redfin wrote.
According to Redfin, even with the median rent staying flat across the U.S., the cost to rent is still higher than pre-pandemic levels for lower-income Americans.
Renting is still the preferred choice over buying and has grown three times faster than home ownership because the cost of home ownership is higher.
To view the full report including a chart and additional methodology, please visit https://www.redfin.com/news/survey-how-renters-afford-housing.