It is no secret that millennials and many Americans are forgoing homeownership in favor of renting—but whether that saves money or wastes it largely depends on how long a household intends to stay there.
Since 1981 the government has defined people spending more than 30% of their income on housing as "cost-burdened," while those spending more than 50% of their income are "severely cost-burdened."
Stacker examined 2021 Census Bureau data, released in 2022, to find how many renters in each state spend more than half their income on housing. Aside from housing, Americans incur necessary monthly expenses such as groceries, utilities, child care, insurance, and more. In areas where housing is expensive, or the median household income is low, it becomes harder for families to juggle the rising cost of living.
Keep reading to discover which states lead the pack in households paying more than half of their income to pay rent.
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