Rising Rents in the U.S. Squeeze Low-Income Tenants

• Rents Remain High in the US Despite More Construction
• Many Hispanic Families Struggle to Cover Other Expenses After Paying Rent
• Less Affordable Housing and Potential Cuts to Federal Aid

Despite hundreds of thousands of new apartments being built, rent in the United States remains too high for millions of families. A Harvard study reveals that costs have reached record levels, affecting not only low-income earners but also those with higher incomes, making it harder to cover other basic expenses.

More Building, Yet Rents in the US Are Higher

The Joint Center for Housing Studies of Harvard (JCHS) estimates that in 2023 there were 22.6 million renters spending more than 30% of their income on rent. Even worse: 12.1 million spend half or more of their monthly paychecks just on housing.

Between 2019 and 2025, average rents increased by 32% nationwide. Although 608,000 new units were built in 2024, demand was higher, with 848,000 new renter households. This helped slow the rise somewhat: in the first quarter of 2025, rents in the United States increased by only 0.8% on average and fell in several markets in the South and West.

According to Bloomberg, the core problem is that almost all new construction is expensive. Between 2013 and 2023, the number of apartments renting for under $1,000 per month (adjusted for inflation) fell by 30%, while those renting for over $2,000 tripled. Affordable housing has not kept pace with the need.

How Does the Rental Crisis Affect You?

For those earning less than $30,000 a year, the situation is dire: 83% are “burdened” by rent. According to Harvard, these families are often left with only $250 per month for everything else—food, transportation, medicine, and schooling.

The problem isn’t limited to low-income earners. About 45% of those earning between $45,000 and $74,999 also spend too much on rent, twice the rate in 2001. Many Latinos working long hours or multiple jobs find that simply having housing no longer guarantees financial stability.

• Other Costs Adding Pressure on Renters: Rent in the US isn’t the only expense straining budgets. Electricity rose 4.5% last year, double the general inflation rate. Part of this is due to growing demand from energy-hungry data centers.

What Analysts Are Saying About the Rental Market

“Being employed doesn’t guarantee avoiding these challenges,” said Alexander Hermann, a Harvard researcher. “We’re seeing persistent affordability issues, especially for lower incomes, but the largest increases are impacting middle incomes.”

“The affordability challenges have never been greater… this is basically the worst time to cut housing assistance,” Hermann added, referring to proposed cuts in the federal budget.

What Lies Ahead for the US Rental Market

The future is uncertain. The construction boom could come to an end due to rising costs and obstacles to launching new projects. Production of affordable units, which peaked in 2024, is expected to drop by half by 2027.

Moreover, President Donald Trump has proposed cutting Section 8 vouchers— the main form of federal rental assistance—by up to 40%.

In cities like New York, where the average rent in Manhattan has reached $4,500, housing is already a central issue in political campaigns. Local and federal leaders are expected to face increasing pressure to address this crisis.

• The Rental Challenge for the Latino Community: Rental costs in the United States are at an all-time high, hitting the Hispanic community particularly hard. Having a job is no longer enough to make ends meet. Solving this crisis requires more affordable housing and maintaining—not cutting—federal assistance.