The average rent in the United States is $1,515/month, which is 0.6% higher than this time last year according to recent data from Apartments.com. Although this is slightly lower than years past, it’s still causing many BIPOC renters deep distress.
A new Zillow report undergirds, pointing out that nearly half of all renter households remain cost-burdened, with BIPOC households disproportionately affected.
“Despite a recent slowdown in rent hikes, rent burdens remain critically high, particularly in BIPOC communities. These financial pressures not only make homeownership increasingly elusive but also contribute to a broader economic disparity,” said Zillow senior economist Orphe Divounguy in a news release.
As previously reported by ESSENCE, 2023 Zillow data revealed that the typical Black, Latinx and Asian American Pacific Islander (AAPI) renter reported spending $50 per rental application while white renters reported paying $35. Black and Latinx renters also reported submitting five applications or more before securing a rental.
“Combined with a persistent housing deficit and lower incomes, people of color have fewer housing options, are less likely to own, and those who do own have lower home values. We need focused efforts to tackle these issues, as stable housing is key to improving health, education and economic opportunities.”
To help narrow the rent affordability gap, Zillow also recently launched a tool to help keep renters abreast of their rights and how to report source-of-income discrimination. The company also reports that BIPOC households spent nearly half of their income on rent, while white households spent 29%.