Rent Is Eating Up a Record Share of Americans' Disposable Income

Published 31/10/2017, 01:48 am
© Bloomberg. Condominium windows are seen illuminated at night in Toronto, Ontario, Canada, on Friday, May 26, 2017. Canadian mortgage growth is slowing as the country's policy makers step up efforts to cool overheated housing markets in Vancouver and Toronto. With four of Canada's biggest banks reporting second-quarter results, the trend shows that growth in home loan portfolios is easing and in some cases shrinking.

(Bloomberg) -- If it feels like the rent keeps going up, you’re not alone: The share of U.S. disposable income that went toward such spending totaled 3.81 percent in the third quarter, marking the highest share in data going back almost six decades.

Rising shelter costs have accounted for most of the inflation in the U.S. during this economic expansion. While part of the rising rental share of spending may result from falling homeownership in recent years, the price index for rental of tenant-occupied nonfarm housing rose 3.7 percent in the year through September, according to data published Monday by the Commerce Department, near the fastest pace seen in the last decade.

Nominal disposable personal income in September was up just 2.9 percent from a year earlier, marking the 22nd straight month in which it grew at a slower rate on a year-over-year basis than rental inflation.

© Bloomberg. Condominium windows are seen illuminated at night in Toronto, Ontario, Canada, on Friday, May 26, 2017. Canadian mortgage growth is slowing as the country's policy makers step up efforts to cool overheated housing markets in Vancouver and Toronto. With four of Canada's biggest banks reporting second-quarter results, the trend shows that growth in home loan portfolios is easing and in some cases shrinking.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.