A new survey from Redfin (NASDAQ: RDFN) has determined that just over one in five (22%) renters are funneling all of their regular income directly into paying their rent.
As a result of this hefty paycheck absorption, 20% of renters are working a second job to cover their housing costs, while 19% complained they are working at a job they hated to afford rent. The survey’s respondents cited other strategies for covering their rent, including cash gifts from family (14%), pulling money out of retirement funds early (13%) and contributing less to their retirement savings (12%).
The new Redfin-commissioned survey was conducted by Ipsos in September and polled 1,802 adults. The survey’s respondents might be happy to learn of another study from Realtor.com that found the median asking rent was down by $14 or -0.8% to $1,720 in October, marking their fifteenth consecutive month of year-over-year declines.
“New multifamily construction projects started in the last two years have hit the market in 2024, with a greater supply of units helping to soften rents and bring renters some relief,” said Danielle Hale, chief economist at Realtor.com. “While we expect fewer multifamily homes to be finished in 2025, we still anticipate enough to increase supply, which will keep downward pressure on rents.”
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