Residents’ personal savings rates are at just $50 per month.
By Paul Bergeron | May 20, 2022 at 08:23 AM
Nearly three-quarters of renters who have seen their rent rise on their current unit are considering a move to a more affordable rental, according to survey data released this week by Realtor.com.
However, options for lower-cost apartment homes are sparse. Renters who moved in the past year are typically paying $350 per month than they did previously.
(Those who are staying put are trying to cut costs, most commonly on entertainment (67.1%) and food and groceries (62.3%).)
The majority of landlords surveyed by Realtor.com reported plans to increase rental prices within the next 12 months, adjusting them to reflect the increasingly competitive market.
“This could mean further rental affordability challenges, with many surveyed renters already feeling the squeeze on their finances and savings, as inflation drives up the cost of everything from rent to regular household expenses,” according to the report.
Rent a Greater Concern That Groceries, Transportation
Higher rents and related household costs top 66% of April renters’ cause of financial strain – ahead of expenses such as food and groceries (57.3%) and auto and transportation (50.8%).
It also is affecting their ability to save, with 76.1% saving less per month than this time last year. Typical households surveyed are saving $50 each month, and respondents said that is because of the higher rents they are paying.
New data from Realtor.com indicates that the US median rental price hit a new high ($1,827) in April – the 14th consecutive month it has risen.