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Surging rents squeezing middle-class Americans the hardest, study shows
What does soaring rent mean for the economy?
Macro Trends Advisors LLC founding partner Mitch Roschelle weighs in on “Varney & Co.,” noting that Americans are being forced to cut down on their discretionary spending amid soaring inflation.
Rent prices in the U.S. are rising at the fastest pace in decades, slamming U.S. households across the country, according to data from the Bank of America Institute.
Median rent payments for Bank of America customers surged 7.4% in July from the previous year, up from 7.2% in June, according to a new report from the Charlotte-based bank. Although skyrocketing rents are squeezing Americans across the income spectrum, middle-income and younger workers are feeling the biggest pinch.
"A significant increase in rent prices can have meaningful impact on household financial situations, particularly for middle and lower income households," the report said.
Rising rents are a concerning development because higher housing costs most directly and acutely affect household budgets. Roughly 34% of households are renters, according to Census Bureau data, but that figure is even larger for lower- and middle-income families. More than half — roughly 52.6% — of households with family income that is below the national median of $31,133 are renters.