Important Takeaways:

• US renters remain burdened as insurance pressures on landlords mount
• Moody’s Analytics found that in Q3, the U.S. rent-to-income ratio (RTI) declined slightly by 0.5% and ended at 30%, a level that is the threshold for being rent-burdened. Renters are considered “burdened” if their rent payments consume 30% or more of their gross, or pre-tax, income. This comes after last year marked the first time that the median renter household in the U.S. paid over 30% of their income on an average-priced apartment when the national RTI reached a high of 30.8%.
• “Rent continued to be burdensome for median income households. For moderate- to lower-income families, growing income inequality and the lack of inventory growth in affordable and Class B/C space, their already higher rent burden will be even more exacerbated.”
• Moody’s Analytics CRE expects the rent burden to trail the 30% rent-burdened threshold over the next year or so.”
• The most rent-burdened cities in the U.S. saw declines in rent burdens year-to-date, although they remain above the 30% threshold in Q3 2023. New York City’s RTI was the highest in the nation at 64.2%, followed by Miami at 42.2%, Fort Lauderdale, Florida, at 37%, Palm Beach, Florida, at 34.3% and Los Angeles at 34%.

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