11 million Americans spend half their rental income - ForumDaily
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11 million Americans spend half their income on rent

Photo: depositphotos.com

Photo: depositphotos.com

The number of renters who spend about half their income on rent reached a record high of 11 million in 2014. This is evidenced by reports from the Joint Center for Housing Studies at Harvard University.

In total, 21,3 million people spend 30% or more of their salaries to cover rent. This figure also reached a record level in 2014.

Paying for rent is becoming more difficult as rent grows faster than salary.

Family budgets are under attack

The loss of such a large part of the rental income implies a reduction in expenses in other areas of life.

This means that the family spends less on essential items: food, clothing and health care. In addition, the situation makes it difficult to achieve long-term financial security by saving for an emergency fund, a down payment or retirement.

Medium income tenants have a particularly difficult time.

In the 10 cities with the highest housing costs, middle-income renters are having a particularly tough time struggling to make ends meet. Nearly 75% of renters earning $30–$000 and 44999% of those earning $50–$45 are considered “economically burdened.” This means they spend 000% or more of their income on rent.

The age of tenants has increased

Last year saw the biggest boom in the number of renters in history—110 million people, or about 36% of U.S. households.

Interestingly, the age of tenants has also increased, 40% of which reached 30-49 years.

Low-income people suffer

More prosperous tenants remain on the rental market longer, thereby supporting the demand for housing. Traditionally, the rich leave from rent and buy their own homes. However, due to a tough inventory, they have to rent housing longer.

Another disappointing fact for low-income tenants is that builders have focused on building luxury apartments, which, as a rule, provide a higher return on investment. This nuance affects the rent increase.

The average rent for a new apartment was $ 1381 in 2015. This means that the tenant must earn at least $ 55000 per year to afford the rent.

A typical tenant earns about $ 34 000 per year, which means that affordable housing for him will be about $ 850.

Buying a house is becoming more real.

As rents rise, your chances of buying your own home increase. Thanks to low mortgage rates, the number of “economically distressed” homeowners fell for the fourth year in a row.

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Rent in the US will go up in 2016 year

The study showed the number of homeless and hungry students in California

How much to earn to buy a house in the US

Four reasons to buy a house in 2016

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