Affordability for market-rate apartments is not a major concern for owners as income wage growth is moving along with rent increases, according to the 2022 Market-Rate Apartment Affordability Report issued Monday by RealPage at its RealWorld Conference in Las Vegas.
The report showed that market-rate residents nationwide are spending 23.2% of their income, well below the oft-quoted 33% affordability ceiling. The 23.2% measure is modestly higher than pre-pandemic norms.
Additionally, according to RealPage's chief economist and head of industry principals Jay Parsons, "It won't be a concern so long as wages continue growing. There's been massive, well-qualified demand for apartments even as rents have increased, and that's why vacancy remains low and rent collections high."
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