Study: Almost one-third of Grand Rapids households are cost-burdened

474
New housing
Photo by iStock

The percentage of Grand Rapids households that struggle with housing costs is in line with the national average, but the burden is greater for renters than owners.

A report from Construction Coverage found 30.4% of Grand Rapids households are cost-burdened, compared to the national rate of 31%.

According to the most recent data from the U.S. Census Bureau, almost one-third of American households are considered cost-burdened, meaning they spend 30% or more of their income on housing.

While this figure has declined by almost 6 percentage points following the 2008-09 recession, it is likely to increase again as the U.S. faces an unprecedented economic downturn due to the COVID-19 pandemic.

While nearly one-third of all households are cost-burdened, renters are more likely to be than homeowners. Nationally, over 46% of renter households are cost-burdened compared to just 22.3% of owner households. This holds true across all income groups except for households making $75,000 or more.

In Grand Rapids, that discrepancy between owners and renters is greater. According to the study, the share of owner households in Grand Rapids that are cost-burdened is 16.2%, while 47% of renter households are cost-burdened.

Additionally, the median monthly housing costs in Grand Rapids was $898, and the median household income was $61,937

Methodology

To determine the cities with the most cost-burdened households, researchers at Construction Coverage analyzed the latest data from the U.S. Census Bureau. The researchers ranked cities according to the share of all cost-burdened households.

Researchers also calculated the share of owner households that are cost-burdened, the share of renter households that are cost-burdened, median monthly housing costs and median household income.

Facebook Comments