A new report from Zillow found deep-rooted disparities in housing affordability in the United States, particularly between BIPOC (black, indigenous and people of color) households and white renters. Although the magnitude of rent increases has slowed from the 2022 peak, nearly half of all renter households remain cost-burdened, and BIPOC households are disproportionately affected.
According to the data, in 2022, the typical BIPOC renter household in the US spent 34% of their income on rent, while white households spent 29%. More alarming gaps appeared in several of the country’s major metropolitan areas, such as New Orleans, where BIPOC households spent 45% of their income on rent compared to 32% of white households.
Notably, the median income of white renter households in New Orleans was 61% higher than that of BIPOC renter households. Although racial income gaps have narrowed over time, these numbers underscore significant and persistent inequalities in housing affordability.
“Despite a recent slowdown in rent increases, rent burdens remain critically high, particularly in BIPOC communities. These financial pressures not only make homeownership increasingly elusive, but also contribute to broader economic disparity,” said Orphe Divounguy, senior economist at Zillow.
“Combined with a persistent housing deficit and lower incomes, people of color have fewer housing options, are less likely to own homes, and those who do have lower home values. We need concentrated efforts to address these issues, as stable housing is key to improving health, education and economic opportunities,” Divounguy added.
The largest racial and ethnic disparities in rent burdens among the top 50 metropolitan areas:
Metropolitan area: New Orleans, Louisiana
Typical rental burden of BIPOC households (2022): 45%
Typical rent burden for white households (2022): 32%
Metropolitan area: Buffalo, New York
Typical rental burden of BIPOC households (2022): 39%
Typical rent burden for white households (2022): 28%
Metropolitan area: Cincinnati, Ohio, USA
Typical rental burden of BIPOC households (2022): 37%
Typical rent burden for white households (2022): 27%
Metropolitan area: Pittsburgh, Pennsylvania
Typical rental burden of BIPOC households (2022): 36%
Typical rent burden for white households (2022): 26%
Metropolitan Area: Cleveland, Ohio
Typical rental burden of BIPOC households (2022): 36%
Typical rent burden for white households (2022): 28%
Metropolitan area: Birmingham, Alabama
Typical rental burden of BIPOC households (2022): 40%
Typical rent burden for white households (2022): 31%
Metropolitan area: Atlanta, Georgia
Typical rental burden of BIPOC households (2022): 36%
Typical rent burden for white households (2022): 29%
Metropolitan Area: Memphis, TN
Typical rental burden of BIPOC households (2022): 36%
Typical rent burden for white households (2022): 28%
Metropolitan Area: Chicago, IL
Typical rental burden of BIPOC households (2022): 35%
Typical rent burden for white households (2022): 28%
Metropolitan area: Boston, Massachusetts
Typical rental burden of BIPOC households (2022): 41%
Typical rent burden for white households (2022): 34%
Zillow recently launched a new listing feature that helps inform renters about their rights and how to report source of income discrimination, you can check it out here.
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