The Rental Affordability Curve: A Distribution of Affordability
Renters, particularly those of low income, are facing significant affordability challenges. In this report, we introduce a new affordability metric called the Rental Affordability Curve, which illustrates affordability gaps across the income spectrum.
The Rental Affordability Curve can be used to estimate what percentage of the renter population likely faces affordability challenges, and how severe the challenges are within specific income bands nationally or at a metro-area level. Generally, rental markets across metros exhibit similar behavior at very low incomes and very high incomes, but in between there is greater differentiation. The Rental Affordability Curve also captures income and rent inequality and provides insight as to how these dynamics influence rental markets.