Hit hard by historic rent inflation, lower-income tenants lost 25 percent of their post-rent purchasing power from 2019 through 2023, according to a new report from the Cleveland Fed.

Rent inflation reached its highest level on record during the postpandemic period, putting the squeeze on purchasing power for renters across income categories.

The median renter saw zero growth in post-rent purchasing power during that four-year period due to both rent inflation and inflation overall. The bottom third, meanwhile, lost more than 7 percent per year, or more than 25 percent in total.

In 2023, roughly 28 percent of renters spend a majority of their income on rent, up from 25 percent in 2019, writes the report's author, Cleveland Fed economist Lara Loewenstein.

"Rent is often the largest single budget item for households who rent their primary residence, and such an increase in cost has the potential to put significant budgetary pressures on renter households," she writes.

The report also provides data showing how much various demographic groups spend on rent and which geographies were hit hardest by rent inflation.

Read the Economic Commentary: Renter Households amid Rising Rents: 2019-2023