Tue. Dec 24th, 2024

An apartment maintenance man changes the lock of an apartment after constables posted an eviction order in Phoenix. In Arizona, low wages, a housing shortage, and short-term rental and vacation homes are eating away at the stock of affordable housing for renters. (John Moore/Getty Images)

There were 21 states where a majority of tenant households spent 30% or more of their incomes on rent and utilities last year, compared with just seven states in 2019.

Nationwide, about 22 million renters are shouldering that percentage. Anyone paying more than 30% is considered “cost burdened,” according to the U.S. Department of Housing and Urban Development, and may struggle to pay for other necessities, such as food, clothing, transportation and medical care.

Three presidential swing states had among the biggest increases in the share of renters who spent that much on housing: Arizona (to 54% from 46.5%), Nevada (to 57.4% from 51.1%) and Georgia (to 53.7% from 48.4%). The numbers are based on a Stateline analysis of American Community Survey data released today by the U.S. Census Bureau. Florida and Maine also saw large jumps.

In Arizona, low wages, a housing shortage, and short-term rental and vacation homes are eating away at the stock of affordable housing for renters, according to Alison Cook-Davis, associate director for research at Arizona State University’s Morrison Institute for Public Policy.

“You’ve got people across the state kind of pulling their hair out, saying ‘I thought Arizona was supposed to be the affordable state,’” Cook-Davis said.

Rents in Arizona have shot up 40% to 60% in the last two years, she said. And the state’s eviction filings spiked 43% to 97,000 between 2022 and 2023, she said.

In places such as Arizona and Nevada where the housing bubble of the late 2000s left vacant houses, the construction of apartments and other homes has not caught up with population increases, Cook-Davis added.

A University of Nevada, Las Vegas, data brief reported in May that the Las Vegas area had the highest percentage of cost-burdened renters in the state, at 58.3%, more even than the New York City metro area (52.6%) or San Francisco metro area (48.9%).

Today’s newly released census figures showed that in addition to Arizona, Nevada and Georgia, the states with the highest jumps in the share of cost-burdened renters were Florida, which increased to 61.7% from 55.9%, and Maine, at 49.1% from 44%.

That jump left Florida as the state with the highest rate of cost-burdened renters. It was followed by Nevada (57.4%), Hawaii (56.7%), Louisiana (56.2%) and California (56.1%).

“Florida isn’t the deal it used to be,” said Christopher McCarty, director of the University of Florida’s Bureau of Economic and Business Research. “Florida still has disproportionately lower-paying jobs compared to other states, and rents are increasing compared to other states as well.”

The states with the lowest rates of cost-burdened renters as of 2023 were North Dakota (37%), Wyoming (41.2%), South Dakota (41.3%), Kansas (43.5%) and Nebraska (44%).

The share of cost-burdened renters increased since 2019 in every state except Vermont (down to 47.8% from 54%), Wyoming (down to 41.2% from 44%), North Dakota (down to 37% from 38%) and Rhode Island (down to 48.1% from 49%).

There’s hope for the future in Arizona and other states with increased home construction, Cook-Davis said.

“If you keep building, eventually this will sort itself out. But that could take years. It’s a slow process,” she said.

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Stateline, like Oregon Capital Chronicle, is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: info@stateline.org. Follow Stateline on Facebook and X.

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