Study Says Americans Spend Almost Half Of Their Income Just To Keep A Roof Over Their Heads
Now, they're more open to alternative options that may ease the pain of those costs than ever before.
shurkin_son | Shutterstock If someone came up to you and took nearly half of your paycheck for a singular necessity, it would probably feel pretty excessive. Yet, that is exactly what is happening with housing.
Recent research shows that Americans are actually handing over 42% of their income for the sole purpose of maintaining secure housing. This is an astounding amount of money to spend on one single thing, but it’s really not surprising when you think about it.
A new study revealed just how much money Americans devote to keeping a roof over their heads.
According to StudyFinds, Talker Research performed a survey on behalf of the construction financing company Built. For the study, Talker gathered 1,000 participants who represented an equal proportion of political ideals and ages. Over 50% of respondents said they believed that they were paying too much for housing right now, and most admitted that they spent an average of 42% of their income on housing costs.
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While this information is concerning, it’s not really shocking. USA Today reported that rent is rising most steeply in areas that are supposed to be affordable. An analysis from the Bank of America Institute found that rent prices rose by 7.5% from 2023 to 2024 in communities that have traditionally low rent costs.
Meanwhile, the price of a home is largely dependent on its location, but Bankrate determined that the median price of an “existing” home — one that’s not in the process of construction — in the U.S. was $398,400 in February 2025. Homes are most expensive in Hawaii, with an average price tag of $975,500. On the other hand, Iowa has the most affordable homes, with an average cost of $230,600.
It’s understandable that Americans are struggling to afford housing and are looking for alternative options.
According to SoFi, the average yearly salary for someone living in the United States is $66,622. Comparing that number to the cost of a home or how rent prices are rising feels disheartening, to say the least. 42% of $66,622 is around $27,981, meaning that is roughly how much Americans are spending on their housing costs each year.
The study from Talker Research and Built also found that Americans are more open to the idea of affordable housing than ever before. While in the past, Americans may have turned their noses up at affordable housing, now 83% of respondents said they viewed it favorably. They’re still a bit confused about who affordable housing is for, with 44% saying they believed it was for low-income households. 33% thought it was another term for government housing.
These misconceptions are false, though. The Department of Housing and Urban Development actually said that the phrase “affordable housing” refers to housing where the total that the resident pays on both the shelter and their utilities is less than 30% of their income.
Affordable housing may be necessary for the future.
It’s no secret that the economy is getting worse, not better. People are struggling with the impact of inflation and rising costs across the board. This means Americans have less and less money to spend on housing.
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Chase Gilbert, the CEO of Built, noted that affordable housing may be the way of the future and the best way to keep the American dream alive. “Affordability challenges have gone mainstream,” he said. “More people are realizing affordable housing isn’t about charity — it’s about keeping the American dream within reach. Homeownership has always been a cornerstone of that dream, and for too many, that path is getting harder to find.”
As we move into an even more uncertain future, things like affordable housing, which make living easier for Americans, may become even more necessary. With Americans already devoting 42% of their incomes to housing, they can’t be expected to pay even more. Affordable housing would be a welcome blessing for many.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
