April 3, 2017
There has been a great deal of talk focused on housing affordability. Zillow came out with a new study indicating that paying rent on a monthly basis is a larger financial burden for those who live in predominantly black or Hispanic neighborhoods, than in white neighborhoods.
Nationally, renters in black neighborhoods can expect to spend 43.7% of their income on rent. Meanwhile, those who live in Hispanic neighborhoods can plan on spending 48.1% of their pay on rent. In white neighborhoods, renters end up spending 30.7% of their income on rent, which is the standard rule of spending about 30% of income on housing.
Perhaps unsurprisingly, renters in minority communities have a more difficult time saving up for down payment for a house.