The Rent is (Way) Too High: #1 of a Series

A recent Census report finds that nearly half of renters nationwide (47.9%) are housing cost-burdened.[1] Moreover, that report notes meaningful differences between racial and ethnic groups, with the renter cost burden the highest for Black or African American households. How does housing cost burden for renters in the Atlanta region compare to the national levels? And do we observe the similar disparities among the racial and ethnic subgroups?

We can address such questions using data from the 1-Year American Community Survey. Starting with the 2023[2] data releases, the Census Bureau has added a new set of tables that address housing cost burden by race and ethnicity[3].

Figure 1 compares the percentage of cost-burdened renters by subgroup for the 29-county Atlanta MSA and the nation as a whole:

As the far left of Figure 1 (above) shows, a majority of renters (54.4%) in the Atlanta MSA are cost-burdened, a level 4.7 percentage points higher than the percentage nationwide (49.7%). The 54.4% “translates” to just under 399,000 cost-burdened households in our MSA.[4] In terms of subgroups, the pattern for Atlanta is similar to that of the nation as a whole: Asian renters are least likely to be cost-burdened, followed in ascending order by non-Hispanic White, Hispanic/Latino, with Black or African-American renters the most likely to be cost-burdened. The only Atlanta renter subgroup with a lower rate of cost-burden than in the nation as a whole is Asian renters (39.2% in Atlanta vs. 43.4% nationwide). The gap between Black and Non-Hispanic White renters is a bit greater (1.1 percentage points) in the Atlanta MSA than in the nation as a whole.

Figure 2 (below) drills down to the county level for the eleven counties in the Atlanta Regional Commission: [5]

As Figure 2 shows above, a majority of renters are cost-burdened in all but two counties–counties that are relatively far from the urban core (Douglas and Forsyth). Clayton and Gwinnett have the highest shares of renters that are cost-burdened.

Figure 3 below compares the cost burdens of Black to Non-Hispanic White renters (by county) for the eleven ARC counties:

The chart (above) shows that Black renters are cost-burdened at higher rates than Non-Hispanic White renters in eight of the eleven counties in the ARC region. The disparities are especially evident in Fayette and Henry counties. Non-Hispanic White renters are cost-burdened at higher rates in Cherokee and Douglas counties, while there are insufficient data for Forsyth County.[6]

Wondering what the picture looks like for owner-occupied properties? Stay tuned for the next episode (#2) in our housing cost series.

Notes:

[1] As defined by the Department of Housing and Urban Development (HUD), a household is considered housing cost-burdened if it spends 30% or more of its income on housing costs. Note that the measure of housing costs used includes the cost of utilities. Some renters pay monthly utilities on top of rent, while others have utilities included in that cost. To allow for an apples-to-apples comparison, the Census Bureau calculates what it calls “gross rent.” This is equal to “contract rent” (the amount actually paid to the landlord each month), plus any applicable costs for electricity, gas, water, sewer, and heating not already included in the rent contract. Similarly, the Census Bureau calculates “Selected Monthly Owner Costs” for homeowners, which includes both the mortgage payment (if applicable) as well as utilities, real estate taxes, and home insurance.

[2] As is true in most cases, the American Community Survey data are released with a lag. The 2023 1-year release, representing data collected over the course of 2023, took place on September 12, 2024. The 2023 5-year release, representing data collected over the five-year period ending in 2023 (i.e., 2019-2023), are due for release in December 2024.

[3] Data on housing cost burden by race have been available in a special tabulation of ACS data called the Comprehensive Housing Affordability Strategy (CHAS) data, which is produced by Census in partnership with HUD. The CHAS data come out with an even longer lag than do the ACS tabulations and are only available as a 5-year product. So, this development is kind of a big deal.

[4] It is worth noting that about 215,000 of these renter households are classified as severely cost-burdened, meaning that they spend 50% or more of their incomes on rent.

[5] Due to issues related to sample sizes, the Census Bureau only releases the 1-year data product for geographic units with 65,000 population or greater, meaning that many of the counties within the MSA but outside the ARC region do not receive 1-year data.

[6] The Census Bureau suppresses data when an estimate does not meet “publication standards”– typically shorthand for cases where a subgroup is so small that the margin of sampling error for that particular estimate is unacceptably high. Renter cost burden is suppressed for the Black population in Forsyth County for this reason.