Note: Data will be available by 10 a.m. on public release day.
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:
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.
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.
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.