Housing costs now account for a third of the average American's budget as inflation continues to impact the economy, according to a MarketWatch article published on Feb. 17.

"Over two years, rents have increased by $302 monthly, or 18.41%," said Rent.com economic researcher Jon Leckie. "We should've seen about a $100 increase in rents over the past two years. Instead, we saw a $300 increase."

According to the U.S. Bureau of Labor Statistics, both the rent index and the owners' equivalent rent index rose 0.7% since December, and the index for lodging away from home increased by 1.2% in January. A 0.7 increase in shelter inflation brings housing and rent costs up by 7.9% over a 12-month timeframe.

World Population Review (WPR) reports that the average American household dedicates approximately 33.1% of its budget to housing costs, which increases the financial impact when rising costs greatly outpace salary increases as they have for the last several years. WPR attributes this to a widening gap between demand and supply. Rising home prices have dissuaded many potential buyers, forcing them to stay in the rental market.

Additionally, Rent.com reports that, while the average American renter pays $1,326 per month, the average asking rent is now $1,900, making moving difficult. The average American renter also spends 30% or more of their income on rent, but in New York City, the figure is 68%, and in Miami, it's 42%.

According to Morningstar, consumer prices rose by 0.5% in January, largely due to a rise in shelter costs. Rent costs also rose by approximately 0.7% in January from December, and by 8.6% from January 2022. Typically, yearly increases are closer to 3%, meaning that the typical rent level for January should've been $1,739. Instead, however, median rent levels for January stood at $1,942.