Latest State of the Nation’s Housing Report Finds Record Number of Housing Cost-Burdened Renters for Third Consecutive Year

By Esther Colón-Bermúdez, NLIHC Research Analyst  

The Joint Center for Housing Studies of Harvard University released its annual report, The State of the Nation’s Housing 2025, on June 24. The report highlights that half of all renters in 2023—a record 22.6 million—were housing cost-burdened, spending 30% or more of their household incomes on housing and utilities. Renters with annual incomes under $30,000 on average had only $250 left to spend on other necessities after paying for housing.   

The report reveals that asking rents in professionally managed multifamily apartment buildings rose by 0.8% between the first quarter of 2024 and the first quarter of 2025. While rents grew modestly nationwide, asking rents increased more in the Midwest (3.1%) and Northeast (3.0%), with minimal change in the West (0.4%). The South saw a 0.5% decline in asking rents, which the report attributes to more new apartment completions. The national supply boost that brought 608,000 new multifamily units in 2024 helped moderate rent increases in the multifamily housing sector despite rising rental demand. 

While renter households across all income levels have been affected by rising housing costs, the rate of cost burden among households with incomes between $45,000 and $74,999 doubled to 45% since 2001. Still, cost burdens are most prevalent among renters with the lowest incomes. Eighty-three percent of households with annual incomes less than $30,000 were cost-burdened, and two-thirds (67%) were severely cost-burdened. On average, cost-burdened renters with annual incomes under $30,000 have just $250 remaining to cover all other basic needs after paying housing costs each month. 

Low-income renters face additional threats to housing security due to the limited and rapidly shrinking supply of low-cost rental housing. Between 2013 and 2023, the number of units renting for less than $1,000 per month, adjusted for inflation, fell by over 30%. Meanwhile, new construction has focused mainly on higher-priced rental units. The median asking rent for apartments completed in the fourth quarter of 2024 was $1,900, which is affordable only to households earning at least $76,000 annually. This is largely due to high and rising costs of land, labor, and building materials, while the existing stock faces pressure from soaring operating expenses, including a 26% increase in insurance costs in 2023. Proposed tariffs raise concerns that these pressures may intensify. Increasing frequency and severity of disasters further threaten the affordable housing stock by destroying homes and driving up rents.  

The report emphasizes the need for housing supports, which are currently threatened under the Trump Administration’s proposed reductions in federal resources. Assistance can't keep up with the growing need for affordable rental units as growth in the number of very low-income renters outpaces growth in the number of eligible renters receiving housing assistance. As a result, an increasing number of low-income renters face severe housing problems and potential homelessness. Rental assistance programs like the Housing Choice Voucher program, Public Housing, and the Low-Income Housing Tax Credit provide lifelines for roughly 5.1 million households. Proposed budget cuts to the voucher program, Public Housing, and other housing programs would severely weaken the housing safety net and further threaten the stability of the millions of households that rely on these crucial supports.  

Read the full report at: https://bit.ly/4nfAFRD