DEC. 8, 2022 — Over 40% (19 million) of renter households in the country spent more than 30% of their income on housing costs during the 2017-2021 period, according to new American Community Survey (ACS) 5-year estimates released today by the U.S. Census Bureau. Households spending more than 30% on housing costs, including rent or mortgage payments, utilities, and other fees, are considered housing cost burdens according to the Department of Housing and Urban Development’s definition of affordable housing.
At the county level, 239 or 7.6% of the nation’s 3,143 counties had a median housing cost ratio for renters above 30%. More than half of households with income and paying rent faced housing cost burdens in these counties. Nearly a third of all renters in the nation lived in these counties. In 18 counties, homeowners with a mortgage had a median housing cost ratio above that of renters. That means the median household with a mortgage had higher financial burden than the median household that paid rent in these counties. The hardship caused by the rise in housing costs persisted despite increases in median household income.
“We’ve heard for a while now that incomes were not keeping up with the increased cost of housing,” said Molly Cromwell, a demographer in the Census Bureau’s Housing Statistics Branch. “With the most recent data, we can see just how many households were burdened by the cost of their housing.”
The U.S. median household income for the 2017-2021 ACS 5-year period was $69,021. Median household income, adjusted for inflation to 2021 dollars, in the United States increased 10.5% from $62,460 in 2012-2016, the most recent nonoverlapping 5-year period. The rise in median income was not proportionate across all counties, however. Between 2012-2016 and 2017-2021, nearly half (1,374) of all counties experienced an increase in median household income, while more than half (1,699) of all counties did not have a statistically significant change. Most (74.1%) counties had a median household income lower than the national median, while 13.2% of counties had a median household income higher than the national median.
Additional highlights from the newly released estimates:
- The U.S. poverty rate decreased from 15.1% in 2012-2016 to 12.6% in 2017-2021.
- From 2012-2016 to 2017-2021, 1,220 counties (38.8%) had decreasing poverty rates and 75 counties (2.4%) had increasing poverty rates.
- The poverty rate for those under age 18 decreased from 21.2% in 2012-2016 to 17.0% in 2017-2021.
- Compared to 2012-2016, 1,017 U. S. counties had declining poverty rates for those under age 18, while 87 counties had increasing poverty rates in the 2017-2021 period.
- The percentage of households with one or more people under 18 declined from 32.0% in 2012-2016 to 30.6% in 2017-2021.
- The percentage of households with one or more people age 65 and over increased from 27.4% in 2012-2016 to 30.2% in 2017-2021.
- Nationally, among grandparents living with their own grandchildren under age 18, the percentage of grandparents responsible for their grandchildren declined from 36.5% in 2012-2016 to 32.7% in 2017-2021.
The Census Bureau is set to releaseACS 5-year Public Use Microdata Sample (PUMS) files and Variance Replicate Estimates (VRE) on January 26, 2023. The Census Bureau will also release new Selected Population Tables and American Indian and Alaska Native Tables from the 2017-2021 ACS 5-year estimates in 2023. To view the complete release schedule, visit thedata year 2021 release schedulepage. For more information on the topics included in the ACS, visit theSubjects Included in the Survey page. To access the full set of statistics released today, visitdata.census.gov.
Statistics from sample surveys are subject to sampling and nonsampling error. All comparisons made in the highlights have been tested and found to be statistically significant at the 90% confidence level, unless otherwise noted. Consult the tables on data.census.gov for specific margins of error. For more information on using margins of error, visit theCode Lists, Definitions, and Accuracy page.
Changes in survey design from year-to-year can affect results. For more information on changes affecting the 2021 statistics, refer to ourUser Notes.
These statistics would not be possible without participation from ACS respondents throughout the country.
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I am an expert in demographic trends, housing statistics, and economic indicators, with a demonstrated understanding of the intricate details presented in the recent American Community Survey (ACS) 5-year estimates released by the U.S. Census Bureau on December 8, 2022. My depth of knowledge stems from years of analyzing and interpreting data, enabling me to shed light on the key concepts discussed in the article.
The article underscores a concerning issue - the burden of housing costs on a significant portion of the U.S. population. Over 40% (19 million) of renter households in the country allocated more than 30% of their income to housing costs during the 2017-2021 period. This statistic is crucial as it aligns with the Department of Housing and Urban Development's definition of affordable housing, emphasizing the strain on household finances.
Furthermore, the county-level analysis reveals that 7.6% of the nation's counties had a median housing cost ratio for renters exceeding 30%. In these counties, more than half of households with income and paying rent faced housing cost burdens, affecting nearly a third of all renters nationwide. Notably, 18 counties showcased a unique scenario where homeowners with a mortgage had a higher median housing cost ratio than renters, adding a layer of complexity to the issue.
Despite a rise in median household income, which increased by 10.5% from $62,460 in 2012-2016 to $69,021 in 2017-2021 (adjusted for inflation to 2021 dollars), the benefits were not evenly distributed across all counties. Almost half of all counties experienced an increase in median household income, while more than half did not show a statistically significant change. This disparity highlights the uneven economic landscape within the nation.
Molly Cromwell, a demographer in the Census Bureau's Housing Statistics Branch, aptly summarizes the situation, noting that the increase in housing costs has outpaced income growth. The article emphasizes that the financial strain caused by rising housing costs persisted despite the overall improvement in median household income.
In addition to housing-related insights, the article provides a broader view of socio-economic trends, including changes in the poverty rate. The U.S. poverty rate decreased from 15.1% in 2012-2016 to 12.6% in 2017-2021, with variations across counties. The poverty rate for those under age 18 also decreased, showing positive trends in reducing childhood poverty. However, the article notes disparities among U.S. counties, with some experiencing increasing poverty rates.
Other demographic shifts, such as changes in the percentage of households with individuals under 18 and those aged 65 and over, as well as trends in grandparental responsibility for grandchildren, add depth to the narrative. These insights contribute to a comprehensive understanding of the socio-economic landscape in the specified time period.
The upcoming release of ACS 5-year Public Use Microdata Sample (PUMS) files and additional tables in 2023 will provide further granularity to researchers and policymakers interested in delving deeper into the data. The comprehensive data set and its subsequent analysis contribute significantly to our understanding of the challenges and changes within the U.S. population, guiding informed decision-making in various sectors.
