Earlier this morning, we released a new study from our brilliant Research team on how the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become homeowners.
The key figure is this: in the past five years, a typical rent rose 15 percent while the income of renters grew only 11 percent.
The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, Calif., (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent).
NAR Chief Economist Lawrence Yun says one way to relieve housing costs is to increase the supply of new home construction – particularly to entry-level buyers. He estimates housing starts need to rise to 1.5 million, which is the historical average.
Where do rents, income growth and overall affordability stack up in your area? Check out the breakdown of 70 metro areas across the U.S.