Your Money Minute Rent Hits 50% Of Take Home Pay 3/6/26
Mar 6, 2026
Liz Everett Crisberg, Head of the Bank of America Institute who analyzes consumer banking and housing trends, breaks down rapid rent increases. She discusses how rent now consumes half of many paychecks. She highlights Bank of America data tracking millions and explains households trading down to afford rising housing costs.
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Rent Far Exceeds Traditional Affordability Rule
- Rent has far outpaced the old affordability rule, moving well above one-third of take-home pay for many households.
- Bank of America data shows rent for middle and lower-income people rose from ~20% five years ago to over 50% for large shares today.
One In Four Middle And Lower Income Households Spend 50%
- A large share of households now spend more than half their take-home pay on rent, with about 25% of lower-income and close to 25% of middle-income households affected.
- Bank of America's analysis of account activity and card payments across ~70 million Americans reveals this surge and its demographic reach.
Rent Stress Drives Widespread Downshifting
- Rent pressure is prompting households to 'trade down' rather than exit the rental market, shifting to smaller units and cheaper neighborhoods.
- Liz Everett Crisberg notes demand rising for lower-dollar rentals and fastest rent growth at lower incomes.