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Sydney is a Senior Research Associate at Apartment List, where she conducts research on economic trends in the housing market.

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Despite the decrease in the share of cost-burdened renters, affordability continues to be a challenge for millions of renters.

With cost-burdened rates of over 45 percent in most large metros, and over 10 million severely cost burdened renters nationwide, the lack of affordable housing remains a major challenge for renters. Senate race in Nevada, and has a BA in Economics and Political Science from UC Santa Barbara.

Renters are significantly more cost-burdened than homeowners, with only 28.3 percent of homeowners spending 30 percent or more of their income on rent, compared to 49.7 percent of renters.

Only 11.1 percent of homeowners are severely cost burdened, less than half the rate for renters.

Unfortunately, this creates a cycle where poor families are stuck in the rental market, struggling with increasing rents and From 2007 to 2011, incomes fell sharply while rents did not, causing an increase in the share of cost-burdened renters.

More recently, renter incomes have been increasing faster than rents, helping to explain the decrease in the share of renters who are cost burdened.

Nationwide, the growth in renter incomes has outpaced rent growth for the past few years, causing a decrease in the share of cost burdened renters.

To better understand the affordability challenges facing renters, Apartment List analyzed U. Census data from 2005 to 2016 on the share of income renters spend on housing.

We divided renters into three groups: 1) Not cost burdened; 2) Moderately cost burdened; 3) Severely cost burdened.

Although this rapid increase in renter income and a decrease in the share of cost-burdened renters appears to be good news for low-income renters, this overall trend appears to be driven by an increase in high-income renters, rather than an increase in income for low-income renters.

From 2005 to 2016, the share of renter households earning over 120 percent of the area median income (AMI) increased by 4.1 percentage points, while the share earning under 80 percent of the AMI fell by a similar amount.

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