US Renters Face Record Strain Amid Housing Shortage

Rising rents and housing costs are straining renters and would-be homebuyers in the United States, with nearly half of American renters now spending over 30% of their income on housing. Suburban areas such as Tigard, near Portland, Oregon, are experiencing faster rent increases than urban centers, highlighting strong demand and limited supply outside city cores. The construction of new rental units in the U.S. is slowing after a recent boom, which exacerbates shortages in the housing market. Efforts to increase housing supply by speeding up approvals are facing industry bottlenecks and labor shortages, as noted by experts in both the U.S. and Australia. Meanwhile, rising home prices in states like Pennsylvania are making homeownership more difficult for first-time buyers even as inventory increases. Policymakers are under growing pressure to address housing supply constraints, which are contributing to inflation and influencing economic policy.