The Federal Reserve Bank of Cleveland published an Economic Commentary analysing renter households during 2019–2023, finding that record post-pandemic rent inflation eroded renters’ post-rent purchasing power across income groups. Over the period, the median renter saw zero growth in post-rent purchasing power, while the bottom third of renters lost more than 25% in total. The analysis estimates the bottom third’s purchasing power fell by more than 7% per year, driven by both rent inflation and overall inflation. It also reports that in 2023 about 28% of renters spent a majority of their income on rent, up from 25% in 2019, and provides additional breakdowns by demographic group and geography on rent burdens and the areas most affected by rent inflation.
Federal Reserve Bank of Cleveland 2026-03-02
Federal Reserve Bank of Cleveland report finds lower-income renters lost 25% of post-rent purchasing power from 2019 to 2023
The Federal Reserve Bank of Cleveland's Economic Commentary reveals that from 2019 to 2023, record post-pandemic rent inflation significantly reduced renters' post-rent purchasing power across all income groups. The median renter experienced no growth in purchasing power, while the bottom third saw a decline of over 25% in total, with an annual decrease of more than 7%. In 2023, about 28% of renters spent most of their income on rent, up from 25% in 2019, with detailed demographic and geographic analyses provided.