65% of Renters Can’t Afford Basic Living Costs After Paying For This—Here’s Why

Almost two-thirds (65%) of working-age renters struggle to afford basic expenses after paying rent, according to Harvard University’s Joint Center for Housing Studies.

It’s not just low-wage workers who are struggling. The researchers found that, after paying rent, even many middle-income, full-time workers don’t have enough left over to cover basic needs.

What’s Driving the Crisis?

The principal reason so many renters struggle to get by is that rents are rising faster than income. The median rent has been rising faster than the median income for renters for decades, a problem that’s only grown worse over time.

Rents are rising because there’s not enough affordable housing available to meet demand. To make matters worse, the cost of other essentials has been increasing, too, further squeezing budgets.

Those surveyed by Harvard paid an average of $18,230 a year in rent and $57,340 in other necessities, such as transportation, taxes, healthcare, food, and child care. Combined, that’s comfortably above the nation’s median annual salary of $62,192.

Who’s Being Hit the Hardest

The most affected are single-income households on low salaries, particularly those raising children alone who have health issues. According to the study, households less than about $45,000 a year are the most vulnerable.

The report also found that people living in rural or non‑metropolitan areas are being hard hit by the rental affordability crisis. While rent is lower in these places, so too are wages and the chances of finding a better paying job.

This goes against a common view that it’s in urban areas where rental affordability issues are the worst.

How Renters Are Coping

When you have just $310 left after rent each month—the median for renters earning under $30,000—there’s no room for error. That’s not enough to cover food, transportation, healthcare, and child care in even the cheapest counties in America.

So renters make impossible choices: skip meals, ration medications, turn off the heat in winter. Many borrow money just to stay afloat, digging themselves deeper into debt. Others fall behind on rent entirely.

When things are this bad, you aren’t able to save for emergencies, a down payment to get out of the rental market, or contribute to a retirement plan.

The Broader Effects for Everyone

This isn’t just a problem for renters—it’s a drag on the entire economy. When many renters can’t cover basic expenses, they’re not spending at local businesses, not saving for retirement, and not building the financial stability that powers long-term growth.

And these aren’t people sitting on the sidelines. They’re teachers, nurses, warehouse workers, and office employees—many with college degrees—who keep cities and towns running. If they can’t afford to live where they work, everyone could see the consequences: longer commutes, labor shortages, and hollowed-out communities.