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Differences in Rent Growth by Income 1985-2019 and Implications for Real Income Inequality, Accessible Data

Figure 1 - Fraction of Renter Households by Income Quintile
Quintile 1980 Fraction Renters 2019 Fraction Renters
1 0.55 0.59
2 0.47 0.46
3 0.37 0.35
4 0.23 0.24
5 0.13 0.15

Source: 1980 Census and 2019 American Community Survey. U.S. Census Bureau. https://www.census.gov/programs-surveys/acs.

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Figure 2 - Rent Growth in the Consumer Price Index and American Housing Survey

Annualized Growth Rate

Year Average Rent Change, AHS Median Rent Change, AHS Change in Rent CPI
1987 3.62 3.16 4.85
1989 3.38 2.66 3.78
1991 3.31 2.67 3.81
1993 2.40 1.16 2.39
1995 2.54 1.82 2.42
1997 2.30 1.47 2.74
1999 2.58 1.75 3.14
2001 3.47 2.61 4.22
2003 2.34 1.38 3.11
2005 2.18 1.11 2.80
2007 2.95 1.99 3.84
2009 2.12 1.30 2.92
2011 1.03 0.00 0.96
2013 1.84 0.42 2.70
2015 n/a n/a 3.31
2017 3.34 2.44 3.72
2019 3.41 2.53 3.60

Note: The CPI is the published CPI for rent of primary residence.

Source: American Housing Survey, U.S. Census Bureau; Consumer Price Index, U.S. Bureau of Labor Statistics. https://www.census.gov/programs-surveys/ahs.html, http://www.bls.gov/cex/home.htm.

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Figure 3 - Rent Growth by Metropolitan Area 1985-2019
Median Rent Growth in AHS Annualized Rent Increase in CPI
1.56 2.65
1.83 2.72
2.05 2.76
2.06 2.82
2.19 2.95
2.23 2.96
2.48 3.30
2.28 3.33
2.29 3.37
2.16 3.43
2.40 3.61
2.74 3.83
2.68 3.87
2.16 4.07

Note: Authors’ calculations from the Consumer Price Index and the American Housing Survey. For the AHS, median rent growth was called for each metropolitan area and year, and the graph shows the average over all available years.

Source: American Housing Survey, U.S. Census Bureau; Consumer Price Index, U.S. Bureau of Labor Statistics. https://www.census.gov/programs-surveys/ahs.html, http://www.bls.gov/cex/home.htm.

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Figure 4 - Median Rent Growth by Quintile of Household Income

Annualized Growth Rate

Year 1st 2nd 3rd 4th 5th
1987 3.03 2.79 3.13 3.33 3.85
1989 2.38 2.52 2.70 2.86 3.45
1991 2.89 2.56 2.70 2.44 2.70
1993 1.33 1.52 1.36 0.72 0.65
1995 1.64 1.70 1.96 1.70 2.38
1997 1.10 1.28 1.77 1.61 1.75
1999 1.64 1.85 1.59 1.92 1.88
2001 2.37 2.63 2.63 2.88 2.96
2003 1.45 1.77 1.22 1.27 0.48
2005 1.23 1.00 1.03 0.99 1.60
2007 2.04 1.96 2.04 2.23 1.23
2009 1.70 1.11 1.08 1.20 0.58
2011 0.00 0.00 0.00 0.00 0.00
2013 0.43 0.19 0.50 0.15 0.90
2017 1.56 2.56 2.91 2.70 2.86
2019 2.44 2.33 2.56 2.70 2.44

Note: Authors’ calculations from the American Housing Survey. For growth rates from period t-1 to t, housing units are grouped by quintile of household income in period t-1.

Source: American Housing Survey, U.S. Census Bureau; https://www.census.gov/programs-surveys/ahs.html.

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Figure 5 - Share of Housing Services in Total Consumption by Income Group

Fraction of Consumption

Year 1st 2nd 3rd 4th 5th
1985 0.34 0.28 0.26 0.25 0.21
1986 0.36 0.28 0.25 0.22 0.20
1987 0.36 0.29 0.27 0.23 0.18
1988 0.35 0.26 0.24 0.22 0.20
1989 0.35 0.26 0.23 0.21 0.18
1990 0.34 0.25 0.24 0.21 0.19
1991 0.35 0.27 0.25 0.22 0.19
1992 0.34 0.28 0.26 0.21 0.19
1993 0.36 0.28 0.27 0.22 0.20
1995 0.38 0.28 0.27 0.24 0.20
1996 0.37 0.29 0.26 0.23 0.20
1997 0.40 0.27 0.27 0.25 0.20
1998 0.37 0.28 0.28 0.24 0.21
1999 0.41 0.26 0.26 0.23 0.21
2000 0.39 0.28 0.27 0.25 0.21
2001 0.43 0.27 0.26 0.22 0.21
2002 0.43 0.28 0.26 0.24 0.20
2003 0.45 0.29 0.27 0.25 0.21
2004 0.44 0.30 0.28 0.25 0.22
2005 0.44 0.30 0.26 0.26 0.22
2006 0.42 0.30 0.27 0.26 0.23
2007 0.41 0.30 0.27 0.23 0.21
2008 0.41 0.30 0.28 0.25 0.23
2009 0.40 0.31 0.27 0.26 0.24
2010 0.39 0.30 0.28 0.26 0.23
2011 0.40 0.29 0.29 0.25 0.22
2012 0.39 0.31 0.28 0.25 0.24
2013 0.40 0.32 0.29 0.26 0.24
2014 0.42 0.32 0.30 0.27 0.25
2015 0.40 0.33 0.28 0.25 0.23
2016 0.48 0.34 0.29 0.27 0.25
2017 0.43 0.32 0.30 0.28 0.25
2018 0.47 0.32 0.30 0.27 0.27
2019 0.43 0.34 0.30 0.27 0.27

Note: Authors’ calculations from the Consumer Expenditure Survey. Housing expenditures are rent for renter households and the owner’s estimate of rent for owner-occupied households. The graph shows average housing expenditure shares for each income group.

Source: U.S. Bureau of Labor Statics, Consumer Expenditure Survey, http://www.bls.gov/cex/home.htm.

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Last Update: November 05, 2021