Realtor.com Reports Decline in Rent Burden for U.S. Households

What's Happening?

Realtor.com has released its September Rent Report, indicating a decrease in the percentage of income that U.S. households are spending on rent. In September 2025, renters earning the typical household income devoted 23.4% of their income to lease a typical home, down from 24.9% a year ago. This change is attributed to modest rent declines and income growth over the past year. The report highlights that rents have decreased year-over-year across all unit sizes, with one-bedroom units leading the decline at $1,582 (-2.3%), followed by two-bedroom units at $1,885 (-2.2%), and studios at $1,426 (-1.0%). The median asking monthly rent for zero- to two-bedroom properties in the 50 largest metros stood at $1,703 in September, marking a $36 (-2.1%) decrease year-over-year. Despite these declines, rents remain $241 (16.5%) higher than pre-pandemic levels.

Why It's Important?

The reduction in rent burden is significant as it provides renters with more financial breathing room, especially in historically high-cost markets. This trend is crucial for economic stability, as housing costs are a major component of household expenses. The decline in rent burden may lead to increased consumer spending in other areas, potentially boosting local economies. However, affordability challenges persist in major markets, particularly along the coasts, where rent burdens remain high. The report suggests that increased rental supply is helping to moderate price pressures, offering renters more choices and leverage in negotiations.

What's Next?

The continued increase in rental supply could further alleviate rent burdens, especially in high-cost areas. As more new rentals come to market, renters may find homes that better fit their budgets, potentially leading to a shift in population dynamics as individuals move to more affordable areas. Stakeholders, including policymakers and real estate developers, may focus on strategies to sustain this trend and address affordability challenges in expensive metros. Monitoring these developments will be crucial for understanding the long-term impacts on the housing market and broader economic conditions.

Beyond the Headlines

The decline in rent burden may have deeper implications for social mobility and economic equality. As housing becomes more affordable, individuals may have greater opportunities to save and invest in other areas, such as education and entrepreneurship. This could lead to long-term shifts in economic power and social structures, particularly in regions where affordability has historically been a barrier to advancement.