High rent poses financial challenges for Americans, may require budget adjustments and seeking assistance

From Yahoo Finance: 2025-04-13 06:10:00

Redfin reports median rent at $1,610, which may seem reasonable for those paying $2,000 monthly, especially in high-rent cities or for larger units. Housing is the biggest expense for Americans, so if rent takes up half your income, covering other bills may become difficult. The 50/30/20 budgeting rule may not work for everyone, so creating a personalized budget and cutting back where possible is essential. Consider alternative transportation options to save money, and explore side job opportunities to boost income. Research rental assistance programs and consider moving to a more affordable neighborhood if necessary.

The U.S. faces a housing shortage, with 21 million renter households spending over 30% of income on rent. Rents surged post-pandemic due to limited supply and high demand, leading to a 4.5 million home shortage in 2022. The country lacks 7.1 million affordable housing units, creating challenges for low-income households. While rents have slightly decreased recently, this may lead to a decrease in rental unit inventory and subsequent rent price increases. Consider building an emergency fund to protect against future debt.



Read more at Yahoo Finance: I’m a 32-year-old single mom and my $2,000 rent eats up half of my take-home pay. How do I cover my expenses?