A new study by Denise DiPasquale and Michael Murray takes a look at the rent squeeze in American, and specifically looks at the how a renter's income went up and their rent fell between 1930-1970 but their income decreased while their rent increased between 1970-2010. CityLab's Richard Florida explains that the increasing share of income being devoted to rent may have been a key contributor to secular stagnation.
Florida looks at how non-housing consumption, across every market studied, fell as rents and housing consumption increased between 1970-2010:
Real non-housing consumption declined by 22.9 percent in New York, 13.6 percent in LA, 12.2 percent in San Francisco. But the decline in non-housing consumption was even greater in Rustbelt and Sunbelt metros. It declined by 49 percent in Detroit, 47.6 percent in Cleveland, 36.5 percent in Pittsburgh, 33.1 percent in Chicago; and by 32.4 percent in Miami, 25.6 percent in Atlanta, and 20.4 percent in Dallas.