Living in the USA has never been less affordable, according to Zillow.
Rental affordability has steadily worsened, according to a new report from Zillow, which tracked data going back to 1979. A renter making the median income in the U.S. spent 30.2 percent of her income on a median-priced apartment in the second quarter, compared with 29.5 percent a year earlier. The long-term average, from 1985 to 1999, was 24.4 percent.
Rental affordability worsened from a year earlier in 28 of the 35 largest metropolitan areas covered by Zillow. Rents were least affordable in Los Angeles, where residents devoted 49 percent of monthly income to rent. The share in San Francisco was 47 percent, 45 percent in Miami, and 41 percent in the New York metro area.
This is not that surprising when you consider that the CPI Urban Consumers Owners Equivalent Rent of Residences is growing at a slower pace YoY than average wage growth.
And homeownership rates keep on falling.
Effective rent growth has been climbing but is expected to decline in 2016.
San Francisco leads the nation in effective rent growth for 2015 with Oakland, Seattle and New York following closely.