Rent Affordability In Just One Chart

We noted earlier this week that the number of cost-burdened-renters has surged to historic highs, as 21.3 million households now pay more than 30% of income for housing.

The WSJ has an incredible chart that shows this development in crystal clear terms: Since 1960, inflation-adjusted rents have risen by 64%, while household incomes only increased by 18% during the same period.

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One final observation on this matter is that as the chart shows, the rate of change in household income since 1960 dropped significantly between 2000 and 2010, and has remained flat since.

Welcome to the recovery: