For 26 percent of renters they are paying over half of their income on just rent and utilities. That is a staggering number. As rents keep rising as demand is growing, these same families are facing increased fuel and food costs.
It really is brutal and it is not going to get any better.
The Federal Reserve is recognizing that inflation is coming fast and there is no real way to stop it. And with families getting foreclosed on regularly the rental population keeps on growing.
I wish I had an easy answer for these families. I do know that something will have to give, either a revamping of Section 8 housing or the millions of empty homes sell for low enough that the investors can price the homes to the marketplace.
Either way, struggling families will need to find a way to keep a roof over their heads.
About 26 percent of renters — or 10.1 million people — spent more than half their pre-tax household income on rent and utilities in 2009. That’s because incomes slipped dramatically from their peak at the start of the decade even as rents kept rising.
The study offers the latest in a series of grim statistics about the scarcity of rental housing, especially for the working poor. The supply has not kept up with demand in part because of a shortage of apartments, a key source of new rentals. Developers cut back on such projects when the economy deteriorated in 2009, which drove down vacancies and boosted rents. Analysts say they expect rents to keep climbing as developers try to ramp up new projects and catch up with demand.
Even if we tell people that prices of houses have gone down to a point that people can actually afford them, the problem is that interest and mortgage rates have gone up. People are also too traumatized by being foreclosed on that they prefer to rent rather than own a house.
I totally agree. Conventional wisdom with regards to renting vs. buying has changed so many times thanks to the financial crisis people don’t know what to believe any more. I get the feeling we’re definitely going to see some government intervention if inflation keeps rising and renting becomes even more unaffordable.
There were some similarities to this scenario back in the 50's when numerous affordable housing programs were put into place around the country. In today's political climate, it's probably not going to happen until the proverbial you know what hits the fan.
In and around Northeast Washington, rents are still cheaper than purchasing a home in many areas. You have to have $20,000 to $30,000 down and your payments will be $1200 a month or you can rent for $800 to $1200 per month and save/invest your $30,000 in something else and if something breaks the landlord can fix it. Sometimes buying is too expensive. Especially when home prices are declining.
Nice information about price. here we are also the leading Company in Delhi Real Estate Developers in Rookree.Experience the fun of a multiplex,complete with food court and shopping centre. All created keeping in mind your specific requirements.
N. calif gold country area to purchase definetly cheaper then renting right now!
There has been a real shift-change and wariness when it comes to renting Vs buying property. It's also about the confidence in the market, and right now there isn't much confidence going round. There has also been a great new app launched which actually tells someone whether it is better to rent compared to buy and vice versa (based on % of deposit down, annual payments, interest payments on a mortgage loan etc) which can help people decide whether to rent or buy based on their financial situation and future earnings and outgoings.
In my area and anywhere in general, it's all dependent upon a person's own situation. As Tim stated above, if the usual rent is around the same or lower than monthly mortgage payments, then renting is still probably a good move. Once again, there are so many factors involved that each situation is different.
The fact is that even with the disruption in housing values over the past few years, home ownership remains the American dream. Ownership provides untold social benefits and even over the past decade has been a source of wealth building exceeding the return on a similar investment in stocks or bonds. Is it not time to face the truth? Home ownership is good! Housing values are on the road to recovery! Now is the best time to buy in recent years!
Rent in some metro areas is out of control, but I think that those who do not live paycheck to paycheck are finally able to start affording their own place.
I agree that inflation is coming fast and there is no real way to stop it…really very hard to face it…
Folks are scared now, there is an increase in tenants because many folks lost their homes, and don’t want the burden of a mortgage anymore, There is a high demand in the rental Market, which is increasing rent, I think we will see that for at least the next 3 years.
Renting would cost me the same as my mortgage (if you included property taxes) but it would be less $ in the long run when I consider the upkeep of a home. Plus the desirability of being mobile if needed. Home ownership is now thought of as risky.
Although very small, land trusts can serve as a nice stepping stone between renting and owning.
Well, it's really bad to know all this situation and as you have said that one of the main reason of increasing rents in shortage of supply of apartments as compared to demand and in my opinion, though there is an economic decline but still Govt. must make to decrease this unbalance between supply and demand because that is way of the only to get rid of this present situation.
My Charlotte real estate agent warned me of the dangers of renting my second house out and gave me advice to make sure that it has someone in it at all times. It definitely is hard to rent out a house and I can understand the reason that the cost is rising but I have managed to keep my cost down and it seems to be going well for me thus far.
With the way the real estate market is going I really don't see that this situation could be improving.
Phils. is right, inflation is coming at us rapidly!
I was searching for this solution from so long, thank you for posting this important method here. Wish to see some more information for getting or purchasing the home in low price rate.
I am also a renter but as for me, if only I have a choice, I would rather buy my own house than renting. I would also go for a rent to own property preferably in hotels in Manila. In a rent – to – own property, I can be rest assured that the money I am throwing for the house every month wouldn't be wasted since the it could be mine in the future.
Hey this is the informative blog post. I totally agreed that renting now a days is getting higher and higher. But I think that in some areas renting may be less as compared to other areas. So it is completely depend upon the individual, if the persons who affords to buy the house, then definitely they should opt for buying the house. If persons who do not afford to buy the house, then for them renting a house is one of the best alternatives.
Renting is getting absolutely absurd nowadays. I live in San Diego and it is much better to buy as the rent is upwards of $2000+ if you want something decent.
I cant believe that rent get to be higher then mortgage, i mean its nice as a land lord but as a renter its sucks