Black, Latinx, and Asian American Pacific Islander (AAPI) renters are paying higher upfront costs, according to Zillow’s Consumer Housing Trends Report. While paying an application fee is more common than not across all racial groups, renters of color are more likely to report paying one, with Black renters at 69%, Latinx at 65%, and AAPI at 60%, compared with white renters at 53%.
The typical renters of color all reported spending $50 per rental application, while typical white renters reported $35. In addition to 45% higher application fees, Black and Latinx renters were nearly twice as likely to submit five applications or more (38%) before securing a rental compared with white renters (21%).
"Monthly rent prices are nearly the highest they've ever been, and, unfortunately for so many people, finding a place to rent comes at an even higher cost," says Manny Garcia, a population scientist at Zillow. "We so often hear about the benefits of renting and the flexibility it offers, but disparities persist, and many renters of color aren't granted the same mobility as others because of higher upfront costs."
Nearly all renters (85%) reported putting down a security deposit, with the typical security deposit being between $500 and $999 for 2022. As security deposits could be a signification obstacle to signing a lease, renters of color reported higher deposits, with 39% of Latinx and 43% of AAPI renters paying at least $500 for their deposit and 22% of Latinx and 30% of AAPI paying at least $1,000.
