Looking for a new pad? Get ready to pay up -- rent is less affordable than ever before in the U.S.
Renters can expect to put 30.2 percent of their monthly income toward rent, the highest percentage ever, according to a new report from Zillow. Rental affordability deteriorated from last year in 28 of the 35 largest metropolitan areas that Zillow tracks.
Los Angeles had the highest rental burden, with residents spending a staggering 49 percent of monthly income on rent. San Francisco was close behind with 47 percent. Renters paid 45 percent of their income in Miami, and 41 percent in the New York metro area.
Landlords have been able to increase rents because demand is so strong. Fewer Americans are buying their own homes due to rigid lending standards and limited supply, but mortgages remain affordable overall.
Average mortgage payments are taking about 15.1 percent of buyers’ income, which is less than the historical average of 21 percent. There are notable exceptions, however -- homeowners in Silicon Valley and San Francisco can expect to spend 42 percent of their income on martgage payments.