SEPT. 12, 2024 – Over 21 million renter households spent more than 30% of their income on housing costs in 2023, representing nearly half (49.7%) of the 42.5 million renter households in the United States for whom rent burden is calculated. Although the median ratio of income-to-housing costs for renters remained unchanged from 2022 at 31%, there are differences in the income-to-housing cost ratio when comparing across householder’s race. That’s according to newly available data tables released today from the 2023 American Community Survey (ACS), 1-year estimates.

"Housing costs rose between 2022 and 2023 for both homeowners and renters. The median cost of housing for renters rose from $1,354 to $1,406 (after adjusting for inflation)," said Molly Ross, a survey statistician with the U.S. Census Bureau. "And new data from the 2023 ACS, 1-year estimates show that the share of a rented household’s income that goes towards these housing costs differs by householder race.”

Households are considered cost-burdened when they spend more than 30% of their income on rent, mortgage payments, and other housing costs, according to the U.S. Department of Housing and Urban Development (HUD). Households spending more than 50% of their income on housing costs are considered severely cost-burdened.

Within Black or African American alone renter households, or households where the householder identified as being only Black or African American, 4.6 million (56.2%) paid more than 30% of their income on housing costs in 2023. Another 2.0 million (54.7%) Some Other Race alone renter households were cost-burdened.

Among the other race groups:

• 1 million (43.4%) Asian alone renter households were cost-burdened.
• 10.4 million (46.7%) White alone renter households were cost-burdened.
• 229,000 (48.8%) American Indian or Alaska Native alone renter households were cost-burdened.
• 53,000 (51.7%) Native Hawaiian or Pacific Islander alone renter households were cost-burdened. The share of Native Hawaiian or Pacific Islander alone renters that were cost-burdened is not significantly different from American Indian or Alaska Native renter households, Some Other Race alone, Two or More Races, or Hispanic renter households.
• 2.8 million (51.4%) Two or More Races renter households were cost-burdened.
• 4.8 million (53.2%) Hispanic renter households were cost-burdened.

The new race tables included in the 2023 ACS, 1-year release also contain the number of severely cost-burdened households by householder race and ethnicity. About 2.5 million (30.6%) Black alone and 1.1 million (28.8%) Some Other Race alone renter householders were severely cost-burdened according to the 2023 ACS, 1-year estimates.

More information about renter cost burden is available in the Largest Annual Real Increase in Gross Rental Cost Since 2011 America Counts story also released today.

While renters had a higher median housing cost as a percentage of income (31.0%) compared to homeowners (21.1% for homeowners with a mortgage and 11.5% for those without a mortgage), 18.8 million homeowners were spending more than 30% of their income on housing costs.

One of the costs impacting homeowners was insurance. According to table B25141, which provides estimates of annual property insurance cost by mortgage status, 5.4 million of the 85.7 million homeowners in the United States paid $4,000 a year or more for homeowner’s insurance in 2023. Florida had the highest number (1.2 million) of homeowners paying $4,000 a year or more for homeowner’s insurance. Texas (784,000), California (560,000), New York (272,000), and Louisiana (215,000) were other states among the largest number of homeowners paying $4,000 or more a year for property insurance.

More data about yearly property insurance payments by mortgage status and percentage of income spent on housing costs by race and ethnicity can be found in the new tables B25141 and B25140A-I, respectively.

• Median household income increased in three states (Florida, Nebraska and Vermont) and decreased in four states (Alaska, Delaware, Georgia and Pennsylvania) from 2022, after adjusting for inflation. Forty-three states, the District of Columbia and Puerto Rico showed no statistically significant differences.   
• Massachusetts, New Jersey and Maryland had the highest median household incomes of all states ($99,858, $99,781, and $98,678, respectively) and were not statistically different from each other. The District of Columbia’s median household income ($108,210) was the highest in the nation. Mississippi had the lowest median household income ($54,203) of any state.
• Income inequality measured by the Gini index increased in three states (Alaska, Delaware and Georgia) and decreased in 10 states (Alabama, California, Florida, Kansas, Kentucky, Massachusetts, Missouri, New York, North Dakota and West Virginia) between the 2022 and 2023 ACS.

• State poverty rates ranged from 7.2% to 18.9%. The poverty rate decreased in seven states (Arkansas, Florida, Kansas, Mississippi, Missouri, North Dakota and West Virginia) and Puerto Rico between 2022 and 2023. The poverty rate increased in three states (Georgia, Tennessee and Utah) from 2022 to 2023. Poverty rates did not significantly change in 40 states and the District of Columbia.  
• For the 25 most populous metropolitan statistical areas (MSAs), poverty rates ranged from 7.9% to 13.9%. In three of the 25 most populous MSAs, the poverty rate significantly changed between 2022 and 2023. Poverty decreased in the Minneapolis MSA (from 8.8% to 8.1%) and increased in two MSAs, the Atlanta MSA (from 10.0% to 11.0%) and the Charlotte MSA (from 9.8% to 10.7%).  

The health insurance landscape over the past decade has been affected in many ways, from the implementation of the Patient Protection and Affordable Care Act to the COVID-19 pandemic and resulting economic and policy changes. A brief released today, "State Health Insurance Coverage: 2013, 2019, and 2023”, examines changes in coverage from 2013 to 2019 and from 2019 to 2023, across states for three age groups: children under the age of 19, working-age adults ages 19 to 64, and adults age 65 years and older, using 2013, 2019 and 2023 ACS, 1-year data.

The ACS is an ongoing survey that asks people to report their health insurance coverage at the time of the interview. Estimates reflect an annual average of current health insurance coverage status.

• Children under the age of 19: 
  • The uninsured rate for children decreased in 37 states from 2013 to 2019 and decreased in 17 states between 2019 and 2023. 
  • Private coverage for children increased in 20 states from 2013 to 2019 and in nine states from 2019 to 2023.
    
  • From 2019 to 2023, 24 states had increases in public coverage rates for children under the age of 19.  
• Working-age adults ages 19 to 64: 
  • The uninsured rate for working-age adults fell in every state and the District of Columbia from 2013 to 2019 and fell again from 2019 to 2023 in 42 states.
  • Between 2013 and 2019, private coverage for working-age adults increased in 44 states and the District of Columbia and decreased in none. From 2019 to 2023, private coverage increased in 16 states. 
  • Between 2019 and 2023, public coverage increased in 36 states for working-age adults, with Oklahoma reporting the largest increase (13.7% to 21%).  
• Adults age 65 and older: 
  • The uninsured rate for adults age 65 and over remained below 3% for all states in 2013, 2019 and 2023. It decreased in 14 states from 2013 to 2019 and decreased in 1 state (Florida) from 2019 to 2023.  
  • Between 2019 and 2023, private coverage rates for adults age 65 and older declined in 42 states. 

The Census Bureau is set to release additional ACS statistics over the next few months, including 2023 ACS, 1-year Supplemental Estimates and 2019-2023 ACS, 5-year estimates. For more information on ACS topics, ranging from educational attainment to computer use, visit the Subjects Included in the Survey webpage. Visit data.census.gov to access all statistics released today.

Thank you to people in communities across the country who responded to the ACS. Without you, these statistics would not be possible.

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Note: Statistics from sample surveys are subject to sampling and nonsampling error. All comparisons made in the highlights have been tested and found to be statistically significant at the 90% confidence level unless otherwise noted. Consult the tables on data.census.gov for specific margins of error. For more information on margins of error, visit the Code Lists, Definitions, and Accuracy webpage. Changes in survey design from year to year can affect results. For more information on changes affecting the 2023 statistics, refer to our user notes.