Post-Pandemic Rental Housing Affordability Economics in the U.S., U.K., & Canada

Grant Alexander Wilson, Jason Jogia and Tyler Case
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Grant Alexander Wilson: Hill & Levene Schools of Business, University of Regina, Regina, Saskatchewan, Canada
Jason Jogia: Chief Investment Officer, Avenue Living, Calgary, Alberta, Canada
Tyler Case: Edwards School of Business, University of Saskatchewan, Saskatoon, Saskatchewan, Canada

Economic Analysis Letters, 2024, vol. 3, issue 2, 74-82

Abstract: Rental unaffordability is defined as spending more than 30% of a household’s gross income on rent. Post-pandemic inflation and interest rate increases have intensified rental unaffordability. This research examines rental affordability in the U.S., the U.K., and Canada. It also explores the effect of renters’ “affordability knowledge” – defined as the expertise tenants have and use to make economical rental housing choices – on rent expenditure and affordability positioning and compares personal finances, economic perspectives, and demographics based on renters in affordable and unaffordable situations. The results show that nearly two-thirds of the renters studied are in unaffordable rental situations. Interestingly, affordability knowledge was found to reduce rent spent and increase affordability situations. Significant demographic differences were found between those in affordable and unaffordable rental situations, including rent spending, food spending, transportation spending, savings, perceived homeownership likelihood, and age. The research offers important insight into current rental affordability economics, recommendations for policymakers, and opportunities for real estate organizations.

Keywords: Affordability; Rental housing; Rental economics (search for similar items in EconPapers)
Date: 2024
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