Black Enterprise; Published By Jeffrey McKinney
When it comes to housing, Providence, RI, offers the lowest-cost rent for Black Americans.
The finding is tied to this new report by Real Estate Witch. It is based on rent-to-income (RTI) ratios in the 50 largest U.S. metropolitan areas as of 2021. The ratio is the percentage of gross monthly income a tenant needs to pay rent. It is recommended that the RTI does not exceed 30% or less of gross monthly income.
The average Providence resident spends $1,066 a month on rent, which is 20.5% of their gross monthly income. Providence is followed, respectively, by San Antonio, Texas; Hartford, Connecticut; Indianapolis; and Atlanta as the five most affordable rent cities for Blacks (see chart below).
Jaime Seale, the report’s writer, shared Black Americans are spending more of their monthly income on rent primarily because they tend to earn lower annual salaries than the overall population In Miami, for example, she says the median annual income for all Americans is $62,870 versus $50,897 for Blacks.
She explained the housing shortage over the past decade has caused demand for homes to exceed supply, boosting home prices rapidly. Read more
