During the 1930s, the United States faced significant economic challenges due to the Great Depression. This period had a profound impact on various aspects of society, including the housing market. This article examines the rental landscape of the 1930s, drawing insights from reputable sources such as Missouri Central Credit Union, Apartment List, and Ephemeral New York.
Key Facts
- Average Rent Prices: Renters in the 1930s paid an average of $18 per month for their housing.
- Renting as the Norm: Before 1950, renting was more common than homeownership in the United States. In 1930, 53.4% of all households rented, and this share remained relatively stable going back to 1900.
- Rent Growth vs. Renter Incomes: From 1930 to 1950, the median rent in 2017 dollars was below $400. However, over the following decades, rents steadily increased. In contrast, renter incomes did not keep pace with rent growth. From 1960 to 2016, the real median rent rose by 87%, while the real median renter income grew by only 11%.
- Household Composition: Renter households in the 1930s were larger compared to today. In 1930, 56.9% of renter households included children under the age of 18. However, the average renter household size has declined steadily over the years, from 3.9 people per home in 1930 to 2.4 people in 2016.
Average Rent Prices
Renters in the 1930s paid an average of $18 per month for their housing, a figure that reflects the economic hardships of the time. This amount was significantly lower compared to subsequent decades, highlighting the affordability of rental housing during this period.
Renting as the Norm
Before 1950, renting was more prevalent than homeownership in the United States. In 1930, 53.4% of all households rented, indicating that renting was the preferred living arrangement for a majority of the population. This trend can be attributed to various factors, including the economic climate, urbanization, and the availability of affordable rental housing.
Rent Growth vs. Renter Incomes
Over the decades, rents have experienced steady growth, while renter incomes have not kept pace. From 1960 to 2016, the real median rent rose by 87%, while the real median renter income grew by only 11%. This disparity has resulted in an increased financial burden for renters, making it more challenging to afford housing.
Household Composition
Renter households in the 1930s were larger compared to today. In 1930, 56.9% of renter households included children under the age of 18. However, the average renter household size has declined steadily over the years, from 3.9 people per home in 1930 to 2.4 people in 2016. This shift reflects changes in family structures and living preferences.
Conclusion
The 1930s was a time of economic hardship, which had a significant impact on the rental market. Renters paid an average of $18 per month for housing, and renting was the norm for a majority of households. However, rents have grown steadily over the decades, while renter incomes have not kept pace, leading to an increased financial burden for renters. Additionally, renter household sizes have declined, reflecting changes in family structures and living preferences. These insights provide a glimpse into the historical context of the rental market and its evolution over time.
Sources:
- Missouri Central Credit Union: Now & Then: A Lot Has Changed Since 1931
- Apartment List: The Ghost of Renters Past: A Portrait of Renters in the U.S. since 1930
- Ephemeral New York: 1930s Apartment Prices New York City
FAQs
What was the average rent in the 1930s?
Renters in the 1930s paid an average of $18 per month for their housing.
Was renting or homeownership more common in the 1930s?
Renting was more common than homeownership in the 1930s. In 1930, 53.4% of all households rented, while only 46.6% owned their homes.
How did rent growth compare to renter incomes in the 1930s?
Rents grew faster than renter incomes in the 1930s. From 1960 to 2016, the real median rent rose by 87%, while the real median renter income grew by only 11%.
Were renter households larger or smaller in the 1930s compared to today?
Renter households in the 1930s were larger compared to today. In 1930, the average renter household size was 3.9 people, while in 2016 it was 2.4 people.
What were some factors that influenced rental prices in the 1930s?
Several factors influenced rental prices in the 1930s, including the Great Depression, which led to widespread economic hardship and a decrease in demand for housing. Additionally, the availability of affordable rental housing and the prevalence of renting as the preferred living arrangement also played a role in shaping rental prices.
How did the Great Depression impact the rental market in the 1930s?
The Great Depression had a significant impact on the rental market in the 1930s. The economic downturn led to widespread job losses and financial difficulties, which resulted in a decrease in demand for housing. This, in turn, led to lower rental prices and an increase in the availability of rental units.
Were there any government policies or programs that affected the rental market in the 1930s?
Yes, there were several government policies and programs that affected the rental market in the 1930s. For example, the Home Owners’ Loan Corporation (HOLC) was established in 1933 to help homeowners refinance their mortgages and prevent foreclosures. Additionally, the Public Works Administration (PWA) provided funding for the construction of new housing units, which helped to increase the supply of affordable rental housing.
How did the rental market in the 1930s compare to the rental market today?
The rental market in the 1930s was significantly different from the rental market today. Rents were much lower in the 1930s, and renting was more common than homeownership. Additionally, renter households were larger, and the availability of affordable rental housing was more prevalent.