Rent Rises Faster Than Income, Study Shows
A study shows that rents are rising faster than household incomes.
More working-age adults are bunking up with roommates to make rent, a new study shows.
With rents growing faster than household income in the Boston metro area, 33 percent of adults between 23 and 65 had roommates in 2012 — the highest rate Boston has seen, according to real estate database Zillow.
That’s just a hair above the national average, where 32 percent of working-age adults were doubled up in 2012. In 2000, only 25 percent of adults lived with others.
In Boston, those earning the median income are currently spending 32 percent of their monthly income on rent, also the highest rate ever.
According to Zumper, a listings and research site, Boston is fourth on a list of most expensive cities to rent in. The Hub’s median rent is $2,250 per month.
Los Angeles, Miami, and New York are among cities with the highest pairing-up rate. Forty eight percent of adults in Los Angeles live with one or more roommate, 42 percent in New York, and 45 percent in Miami.
Zillow chief economist Stan Humphries points to a “coiled spring’’ in the market. “If and when these compressed households begin to unwind and these millions of Americans do start to create their own households, demand will bounce back … [creating] more incentive for builders to construct more homes,’’ he said in a statement.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com