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Rent burden and the Great Recession in the USA

Author

Listed:
  • Gregg Colburn

    (University of Minnesota, USA)

  • Ryan Allen

    (University of Minnesota, USA)

Abstract

In the aftermath of the recent recession, the percentage of households facing rent burden in the USA reached historically high levels, while cost burden for owners has shrunk. This study uses two panels from the Survey of Income and Program Participation (SIPP) to compare the prevalence, distribution and household responses to the phenomenon of rent burden in the USA in the years immediately before and after the Great Recession. Results suggest that rent burden has become more prevalent after the recession and that income, household composition and location are major drivers of this phenomenon, both before and after the recession. Results also indicate that exiting rent burden was more difficult in the years after the recession and that an increasingly common coping mechanism for rent burdened households is to increase their household sizes. These results indicate that renters have experienced increased financial stress related to their housing. This finding is notable given the lack of policy responses that address hardship among renter households in contrast to the privileged status enjoyed by homeowners in the policy domain.

Suggested Citation

  • Gregg Colburn & Ryan Allen, 2018. "Rent burden and the Great Recession in the USA," Urban Studies, Urban Studies Journal Limited, vol. 55(1), pages 226-243, January.
    • Handle: RePEc:sae:urbstu:v:55:y:2018:i:1:p:226-243
    DOI: 10.1177/0042098016665953
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    References listed on IDEAS

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    1. Michael D. Hurd & Susann Rohwedder, 2010. "Effects of the Financial Crisis and Great Recession on American Households," NBER Working Papers 16407, National Bureau of Economic Research, Inc.
    2. Kimberly Skobba & Edward G. Goetz, 2015. "Doubling up and the erosion of social capital among very low income households," European Journal of Housing Policy, Taylor and Francis Journals, vol. 15(2), pages 127-147, April.
    3. Lee, Kwan Ok & Painter, Gary, 2013. "What happens to household formation in a recession?," Journal of Urban Economics, Elsevier, vol. 76(C), pages 93-109.
    4. Kimberly Skobba & Edward G. Goetz, 2015. "Doubling up and the erosion of social capital among very low income households," International Journal of Housing Policy, Taylor & Francis Journals, vol. 15(2), pages 127-147, April.
    5. Anne B. Shlay, 2015. "Life and Liberty in the Pursuit of Housing: Rethinking Renting and Owning in Post-Crisis America," Housing Studies, Taylor & Francis Journals, vol. 30(4), pages 560-579, July.
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