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Tuesday, May 3 2011 - By Autumnn Darden
A significant percentage of people's paychecks are being devoted to rent.
A new report from an Ivy League institution is adding fuel to the fire that people are still financially recovering in the wake of the global recession.

According to the Harvard Joint Center for Housing Studies, a record number of workers are putting as much as half of their earnings toward rent payments.

The report - titled "America's Rental Housing: Meeting Challenges, Building on Opportunities" - found that as much as 25 percent of renters are spending half their income on monthly rent and utility payments and approximately 26.2 percent devote between 30 percent and 50 percent of their income to housing fees.

Eric Belsky, author of the study and directors for the JCHS, said rent payments have been skyrocketing for some time now.

"In the last decade, rental housing affordability problems went through the roof,” said Belsky. "In
real terms, it means more people have less money to spend on household necessities such as food, health care, or savings."

This study may help explain why so many people are moving out of rental units for homes, as several reports have indicated it's become more affordable to own a home than rent an apartment. 

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