Recent information from the U.S. Census Bureau showed that renters may be renewing their leases despite the fact that prices have become more unaffordable.
Overall, the amount of consumers who pay more than 30 percent of their total income on housing costs increased to 53 percent in 2010, from 51.5 percent in 2009, and about half of homeowners in 2008. This threshold is the government's line to determine whether or not housing is affordable, according to USA Today. Overall, median rents stood at $855 per month in 2010. The problem was with median national household incomes, which dropped more than 2 percent during the same year.
"Americans continue to struggle to pay for housing, especially renters," Daniel McCue, research manager at Harvard University's Joint Center for Housing Studies told the paper.
Rents are expected to increase in both 2011 and 2012, the news source added. This is mainly due to a much higher demand for rentals than in the past.
However, the housing market has made improvements as of late. Both commercial and residential median prices have increased over the past few months, which may signal a continued improvement in the housing industry.