Largest Annual Real Increase in Gross Rental Costs Since 2011

America Counts: Stories Behind the Numbers

📖 Explore highlights from the 2023 ACS 1-Year Estimates release in new America Counts stories from earlier this week.

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Largest Annual Real Increase in Gross Rental Costs Since 2011

The real median gross cost of renting — rent plus the average monthly cost of utilities and fuels adjusted for inflation — grew faster annually (3.8%) than real median home values (1.8%) in 2023 for the first time in 10 years, according to the 2023 American Community Survey (ACS) released on Thursday.

This marked the largest annual real increase in rental costs since at least 2011.

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Every year from 2011 to 2019, real rent costs increased less than 3.0%. In 2022, after the peak of the COVID-19 pandemic, rent grew 1.0% — only one-fourth of the 2023 increase.

Despite this large spike, the share of renter income spent on rent and utilities remained at 31.0% in 2023, an indication that renter household incomes kept pace with rent hikes.

Continue reading to learn more about:

Rent costs by state
Incomes keeping up with rent increases

News Release

American Community Survey: New Statistics Available from the 2023 ACS 1-Year Estimates

Over 21 million renter households spent more than 30% of their income on housing costs in 2023, representing nearly half (49.7%) of the 42.5 million renter households in the United States for whom rent burden is calculated.

Although the median ratio of income-to-housing costs for renters remained unchanged from 2022 at 31%, there are differences in the income-to-housing cost ratio when comparing across householder’s race. That’s according to newly available data tables released on Thursday from the 2023 American Community Survey, 1-Year Estimates.

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