Nearly half of renting households are cost-burdened; percentages vary by race

SEPTEMBER 12, 2024 – In 2023, more than 21 million renter households spent more than 30% of their income on housing costs. These households account for nearly half (49.7%) of the 42.5 million renter households in the United States that are estimated to be excessively rent burdened. Although the median income-to-housing cost ratio for renters has remained unchanged at 31% since 2022, there are differences in the income-to-housing cost ratio when comparing the race of the householder. This information comes from the most recent data tables released today from the 2023 American Community Survey (ACS) 1-Year Estimates.

“Housing costs increased between 2022 and 2023 for both homeowners and renters. The median renter housing cost increased from $1,354 to $1,406 (after adjusting for inflation),” said Molly Ross, a survey statistician at the U.S. Census Bureau. “And new data from the 2023 ACS 1-Year Estimates show that, in a renter household, the percentage of income that goes toward these housing costs varies by the race of the householder.”

According to the Department of Housing and Urban Development (HUD), households are considered cost-burdened when they spend more than 30% of their income on rent, mortgage payments, and other housing costs. Households that spend more than 50% of their income on housing costs are considered cost-burdened.

Among Black or African American renter households only, or among households where the householder identified as Black or African American, 4.6 million households (56.2%) spent more than 30% of their income on housing costs in 2023. Another 2.0 million (54.7%) of other race renter households alone had an excessive housing cost burden.

Among other racial groups:

• 1 million (43.4%) of Asian-origin renter households alone had excessive housing cost burden.
• 10.4 million (46.7%) of white renter households alone had excessive housing cost burden.
• 229,000 (48.8%) American Indian or Alaska Native renter households alone had excessive housing cost burden.
• 53,000 (51.7%) Native Hawaiian or Pacific Islander only renter households had an excessive housing cost burden. The percentage of Native Hawaiian or Pacific Islander only renters who had an excessive housing cost burden is not significantly different from American Indian or Alaska Native, some other race only, two or more races, or Hispanic renter households.
• 2.8 million (51.4%) of renter households of two or more races had an excessive housing cost burden.
• 4.8 million (53.2%) of Hispanic renter households had excessive housing cost burden.

The new race tables included in the ACS 2023 1-Year Estimates release also contain the number of households that had excessive economic burden by race and ethnicity of the householder. According to the ACS 2023 1-Year Estimates, nearly 2.5 million (30.6%) Black-only renter households and 1.1 million (28.8%) some other race-only renter households had excessive economic burden.

More information on excessive cost burdens on tenants is available in the Largest Annual Real Increase in Gross Rental Cost Since 2011 America  Counts story, also released today.

Although renters had a higher median housing costs as a percentage of income (31.0%) compared to homeowners (21.2% of homeowners with a mortgage and 11.5% of homeowners without a mortgage), 18.8 million homeowners spent more than 30% of their income on housing costs.

One cost that impacted homeowners was insurance. According to table B25141 , which provides estimates of the annual cost of property insurance per mortgage payment, 5.4 million of the 85.7 million homeowners in the United States paid $4,000 a year or more for homeowners insurance in 2023. Florida had the highest number of homeowners (1.2 million) who paid $4,000 a year or more for homeowners insurance. Texas (784,000), California (560,000), New York (272,000), and Louisiana (215,000) were the other states that had the highest number of homeowners who paid $4,000 or more a year for property insurance.

Additional data on annual homeowners insurance payments per mortgage payment and the percentage of income spent on housing costs by race and ethnicity can be found in new tables B25141 and B25140A-I , respectively.

• Beginning in 2022, median household income increased in three states (Florida, Nebraska, and Vermont) and decreased in four (Alaska, Delaware, Georgia, and Pennsylvania), after adjusting for inflation. Forty-three states, the District of Columbia, and Puerto Rico showed no statistically significant differences.   
• Massachusetts, New Jersey, and Maryland had the highest median household incomes of all states ($99,858, $99,781, and $98,678, respectively), and were not statistically different from each other. The median household income in the District of Columbia ($108,210) was the highest in the nation. Mississippi had the lowest median income ($54,203) of all states.
• Income inequality according to the Gini index increased in three states (Alaska, Delaware, and Georgia) and decreased in 10 states (Alabama, California, Florida, Kansas, Kentucky, Massachusetts, Missouri, New York, North Dakota, and West Virginia) between the 2022 and 2023 ACS.

• Poverty rates across all states ranged from 7.2% to 18.9%. The poverty rate decreased in seven states (Arkansas, Florida, Kansas, Mississippi, Missouri, North Dakota, and West Virginia) and Puerto Rico from 2022 to 2023. The poverty rate increased in three states (Georgia, Tennessee, and Utah) from 2022 to 2023. Poverty rates did not change significantly in 40 states or the District of Columbia.  
• In the 25 most populous metropolitan statistical areas (MSAs), poverty rates ranged from 7.9% to 13.9%. In three of the 25 MSAs, the poverty rate changed significantly between 2022 and 2023. Poverty decreased in the Minneapolis MSA (from 8.8% to 8.1%) and increased in two MSAs: Atlanta (from 10.0% to 11.0%) and Charlotte (from 9.8% to 10.7%).  

Over the past decade, the health insurance landscape has been impacted in many ways, from the implementation of the Affordable Care Act to the COVID-19 pandemic and the resulting economic and policy changes. Using data from the ACS 1-Year Estimates from 2013, 2019, and 2023, a report released today, “ State Health Insurance Coverage: 2013, 2019, and 2023 ,” examines changes in coverage from 2013 to 2019, and from 2019 to 2023, across all states for three age groups: children under age 19, working-age adults (ages 19 to 64), and adults age 65 and older.

The ACS is an ongoing survey that asks individuals to report health insurance coverage at the time of the interview. Estimates reflect an annual average of current health insurance coverage status.

• Children under 19 years of age: 
  • The rate of uninsured children decreased in 37 states from 2013 to 2019, and decreased in 17 states between 2019 and 2023. 
  • Private health insurance coverage for children increased in 20 states from 2013 to 2019, and in 9 states from 2019 to 2023.
  • From 2019 to 2023, 24 states saw increases in public health insurance coverage rates for children under age 19.  
• Adults of working age (19-64 years): 
  • The rate of uninsured working-age adults decreased in every state and the District of Columbia from 2013 to 2019, and decreased again from 2019 to 2023 in 42 states.
  • Between 2013 and 2019, private health insurance coverage for working-age adults increased in 44 states and the District of Columbia, and did not decrease in any. From 2019 through 2023, private health insurance coverage increased in 16 states. 
  • Between 2019 and 2023, public health insurance coverage for working-age adults increased in 36 states. Oklahoma reported the largest increase (from 13.7% to 21%).  
• Adults 65 years of age or older: 
  • The uninsured rate for adults ages 65 and older remained below 3% in all states in 2013, 2019, and 2023. It decreased in 14 states from 2013 to 2019, and decreased in 1 state (Florida) between 2019 and 2023.  
  • Between 2019 and 2023, private health insurance coverage rates for adults age 65 and older decreased in 42 states. 

The Census Bureau is set to release  additional ACS statistics  in the coming months, including the 2023 ACS 1-Year Supplemental Estimates and the 2019-2023 ACS 5-Year Estimates. For more information on topics covered in the ACS, from education attainment to computer use, visit the  Survey Subjects webpage . Visit  data.census.gov  to access all of the statistics released today.

Many thanks to the people in communities across the country who responded to the ACS. Without you, these statistics would not be possible.