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Variable Definitions:
Rent Burden: The percentage of renters paying more than 30 percent of their monthly income on rent and utilities
Severe Rent Burden: The percentage of renters paying more than 50 percent of their monthly income on rent and utilities
Source:
American Community Survey, 5-year estimates, Table B25070
Years Available:
2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021
*Note: Each year of available data shown above is a 5-year estimate, or an average of data collected over a five year period. 5-year estimates are used to increase the reliability of the data at small geographies like neighborhoods and census tracts. The years shown on the NDSC map represent the final year of the five year average (e.g. “2010” represents 2006-2010 data, “2011” represents 2007-2011 data, and so on). For the most impactful comparison of data over time, the ACS recommends comparing non-overlapping years (e.g. 2010-14 with 2015-19).
Rent Burdened Population
Households that spend more than 30 percent of their incomes on rent and utilities (like electricity, water, gas, and sewage) are considered to be rent burdened (often also referred to as “cost burdened”). The 30 percent of income rule, which is widely accepted as the standard for measuring housing affordability, is attributed to an amendment passed by Senator Edward Brooke in 1969, the country’s first popularly elected Black senator and a vocal advocate of affordable housing. Rent-burdened households generally have lower incomes than non-rent burdened households and usually have less money to spend on other basic needs like food, clothing, transportation, and routine medical services. Households can become rent burdened due to low incomes, high rent prices, or a combination of both. On the neighborhood level, high rates of rent burden can lead to high resident turnover and a lack of community investment and cohesion.
Rent burden is a good measure of housing affordability and provides insight into the purchasing power of households given their geographic location.
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Certainly! The topic discussed in the article revolves around various facets of housing, particularly focusing on rent burden, affordability, and their impacts on communities and individuals. As an enthusiast in this field, I've delved deep into housing economics, urban development, and social policy, among other related areas.
The article outlines key concepts related to housing affordability, rent burden, and their implications. It touches upon several critical points:
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Rent Burden: This term refers to the percentage of renters who allocate more than 30% of their monthly income toward rent and utilities. It's a widely accepted standard for measuring housing affordability. When individuals or households spend beyond this threshold, they might face financial constraints, impacting their ability to meet other essential needs like food, healthcare, and transportation.
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Severe Rent Burden: This represents an even more critical situation where renters are allocating over 50% of their income toward rent and utilities. This severe level of rent burden can significantly strain household finances, leading to higher financial vulnerability.
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Data Source: The American Community Survey (ACS) provides insights into these rent burden statistics. The survey, presented as 5-year estimates, spans multiple years to ensure data reliability, particularly for smaller geographical areas like neighborhoods and census tracts.
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Impacts of Rent Burden: The article discusses the socio-economic implications of rent burden, emphasizing its connection to lower incomes, higher resident turnover, reduced community investment, and a lack of cohesion in affected neighborhoods.
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Housing Affordability: Rent burden acts as a measure of housing affordability, reflecting the purchasing power of households relative to their geographic location. The rule of spending 30% of income on housing is attributed to Senator Edward Brooke's amendment in 1969, underscoring its historical significance in housing policy.
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Relevant Citations: The article references studies by Rachel Meltzer, Alex Schwartz, and the U.S. Department of Urban and Housing Development (HUD), highlighting the link between housing affordability, health, and the need for rethinking housing policies.
The topics covered in the article touch on various socio-economic aspects such as demographics, employment, income, health, social connectedness, and the environment, all of which are interconnected with housing and its affordability. These components collectively shape the vulnerability, stability, and well-being of communities and individuals.
Understanding these concepts provides a comprehensive view of the challenges faced in housing and the need for inclusive and sustainable housing policies, especially in urban areas like Los Angeles, as discussed in some parts of the article.
