Zillow: Rent takes bigger bite of pay than mortgage

The mortgage figures in the study do not include taxes or insurance premiums.

Though the share of rent to income is higher than historical averages in metro Atlanta, it is still below the 30 percent of income rule that defines whether housing is affordable, Zillow said.

Metro Atlanta is relatively affordable on a national level. The income share for renters in the U.S. is currently 30.2 percent, up from 24.4 percent from the mid-1980s to 2000. Buyers spend 15.1 percent of incomes on mortgages now vs. 21.3 percent before the boom years.

Svenja Gudell, Zillow’s chief economist, said “unaffordable rents are making it hard for people to save for a down payment and retirement, and that people whose rent is unaffordable are more likely to skip out on their own healthcare.” She said it’s a good time to buy if it’s possible to cobble together a down payment.

Rents in metro Atlanta grew at an annual rate of 7.3 percent in June, according to data firm Axiometrics. The average two-bedroom unit rented for $1,020, while occupancy stood at 94.7 percent, the report said.

Low home-ownership rates and tight supply will push rents higher, despite thousands of units expected to come online, though the growth rate of rents may moderate, experts said last week at an Atlanta Apartment Association conference.