On average, almost half of Hoosiers (47.8%) are spending more than 30% of their monthly income on rent. That’s according to a study done by the home security service Vio Security.
“A lot of people have lost their jobs in the pandemic, which means people are having a lot harder time paying rent. Around the country, you’re seeing eviction bans happening, which I think is helpful,” says Rosemary Roller, media relations specialist at Vio Security.
The moratorium on evictions in Indiana ends August 14.
You’ve probably heard many financial experts say it’s not a good idea to spend no more than 30% of your monthly income on rent. Roller says that is hard to do in today’s climate.
“We were curious as to how many people were following that rule. Overall, Indiana is fairing fairly well. Indiana ranks #20,” says Roller. “But there are other cities that are still spending a good amount of money on rent.”
One of those cities is West Lafayette. Roller says more than 70% of people in West Lafayette are spending more than 30% of their income on rent. Roller says that number tends to be higher in cities or towns where there are colleges and universities (in West Lafayette’s case, Purdue University).
Roller says one thing that helps Indiana has a “great investment market for real estate.”
“It’s a very competitive housing market, which can contribute. Also, some people just choose to spend more on rent, so they can live in a city where they can enjoy the amenities more,” says Roller. “In Indianapolis, about 53% of residents pay a little more than 30% of their income on rent. A lot of people there are finding that they are enjoying the city life while also still being able to afford their rent.”
If you think your rent is too high, Roller says there are things you can do.
“Look into having a roommate if you think you can adjust to having a roommate. Also, consider living outside of a big city,” says Roller.
36.5% of people in Highland are spending more than 30% of their monthly income on rent (lowest of any city in Indiana).
Nationwide, North Dakota is the state with the fewest number of people spending more than 30% of their monthly income on rent (39.7%). Florida is the highest at 57%.