Definition
The percentage of household income that is spent on gross rent (contract rent plus utilities). Often categorized into ranges (e.g., less than 20%, 30-34.9%, 50% or more).
Why It Matters
This is a direct measure of housing cost burden for renters. High percentages indicate that a significant portion of income is consumed by housing, leaving less for other necessities and discretionary spending, signaling economic stress.
Specific Relevance for Professionals:
Marketers
Helps identify markets with high housing cost burdens, influencing demand for budget-friendly products/services, financial planning, or housing assistance programs. Messaging can address affordability challenges directly.
Researchers
Fundamental for studying housing affordability crises, economic inequality, and the financial stress faced by renter households. It provides insights into the trade-offs households make between housing and other necessities.
Consultants
Crucial for advising housing non-profits, urban planners, or social service agencies on areas with high housing cost burdens for targeted interventions and program development.
Public Policy Workers
Paramount for informing housing policy, rental assistance programs, rent stabilization efforts, and understanding the severity of housing affordability challenges across different income levels for renters.
