Friday, April 25, 2014

Rent Affordability

In the past, renting an apartment or home was seen as an affordable option for people hesitant to enter the housing market.  According to a recent report from Zillow, this is far from true across most of the country.

Renters across the U.S. are now spending more of their income on rent costs than at any time in the past 30 years.  In addition to rising rent prices and decreased vacancies, flat incomes have compounded the problem.

Based on Zillow's Rent Index which tracks the monthly median rent in certain areas of the country, renters are spending almost 19% more of their incomes on rent than renters from 1985-2000.

To more dramatically illustrate the chasm between wage growth and rent growth, Zillow reports that from 2000-2014 median household income increased by 25.4% while rent increased over 52.8%.

Read the full article HERE.

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