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Rental Housing Crisis in the US

RENTAL CRISIS IN THE US There are MORE RENTERS NOW than in the history of the United States RENT 43,267,432 HOUSEHOLDS WITH 110,175,847 RESIDENTS Unfortunately, we're also in "the WORST RENTAL AFFORDABILITY CRISIS that this country has ever known," per the U.S. Secretary of Housing and Urban Development. LET'S TAKE A LOOK AT WHAT HAPPENED THANKS TO The Housing Crisis The Great Recession Stagnant Wages HOME OWNERSHIP IS AT A 48-YEAR LOW 70 60 +++++ +++++ +++++ ++++++++++++++++++++++++++++++ ++ 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 MEANWHILE, 2004-2014 SAW THE STRONGEST 10-YEAR GROWTH IN RENTALS SINCE THE LATE 80S Average Annual Growth in Renters 1990s 274,000 2000s 507.000 2010-13 1,250,000 THIS INCLUDES SURGES ACROSS AGE DEMOGRAPHICS AND RACE AND ETHNICITY [approx. % increases 2004-12] 3% <25 2.39 White 6% 25-29 3.49 Hispanic 30-34 Black 10% 35-39 3.69 Asian/Other 40-44 3.6% All 6% 45-49 BUT HERE'S THE PROBLEM. 50-54 20% T 10%-+6% Median gross rents is up while median renter income is down 55-59 0% THOSE NUMBERS 60-64 DON'T ADD UP -10% - 13% 65-69 Per Month Income, Rent 100% % Housing Cost of Income $3,500 80 $3,000 - $2,500 - 60 $2.000- 40 $1,500 $1,000 - 20 $500 - '86 '88 '90 '92 94 '96 '98 00 '02 04 06 08 '10 12 '86 '88 '90 '92 94 '96 '98 00 '02 '04 06 08 '10 12 = Median Renter Income = Gross Rent = Gross Rent = Asking Rent New Apt. = Asking Rent New Apt. Traditional Affordability Rule: Rent + Utilities < 30% Income Rental costs as a share of median household income in Q1 2015 17 cities 5 or more cities 2 or more cities 1 city or less In total, NEARLY HALF OF AMERICAN RENTERS SPEND MORE THAN THE MAXIMUM SUGGESTED PERCENT INCOME ON RENT. Rent burdened Still, we've only looked at middle-class renters, really. It gets worse. 100% 80 That rose 12% points in one decade, and more than doubled in 50 years. 60- 46% 22% 40- 20 Renters with incomes Renters with incomes less than $30,000 less than $15,000 1960 1970 1980 1990 2000 2002 2004 2006 2008 2010 2012 That's a 25% INCREASE in households paying Possible Projected Growth of Severely Burdened Households 11.8 MILLION MORE THAN 50% 2015: in rent 2025: 14.8 MILLION Increase of Severely Burdened Age Race/Ethnicity 100% 100% 80- 80 Including rapid growth across all demographics, with the elderly and Hispanics taking the worst hit. 60 60 40 40 20 20 15-24 25-34 35-44 45-54 55-64 65-74 75+ White Black Hispanic Asian Even at baseline estimates, 13.1 MILLION AMERICANS could be severely cost-burdened by rent in 10 years EXPENDITURES BECOME PROBLEMATIC Spending Decrease HEALTHCARE TAKES THE BIGGEST HIT % who skip care because of rent costs 100% 80 60 40 20 Transportation Retirement Savings 50% See a specialist 16% Food See a Dental 40% Follow up Mental Prescription healthcare medicine 38% 65% care doctor 13% 8% 23% 25% Rental availability and affordability IS IN A FULL-BLOWN CRISIS, CAPABLE OF SENDING THE COUNTRY BACK INTO A ECONOMIC SPIRAL if not properly addressed. Until then, MORE THAN 1 IN 3 AMERICANS will continue to struggle getting their rental checks in on time. CITATIONS BROUGHT TO YOU BY AFFORDABLE-ONLINE-COLLEGES.NET http://www.jchs.harvard.edu http://blogs.wsj.com/economics/2015/07/28/u-s-homeownership-rate-hits-48-year-low/ http://qz.com/416474/homeownership-is-no-longer-the-lynchpin-of-the-american-dream/ http://www.bloomberg.com/news/articles/2015-04-28/homeownership-rate-u-s-falls-to-63-7-lowest-since-1993 http://nmhc.org/Content.aspx?id3D4708 http://www.zillow.com/research/rent-affordability-2013q4-6681/ http://blogs.wsj.com/economics/2015/07/28/where-rents-are-eating-up-a-bigger-share-of-income/ http://www.zillow.com/research/rent-burden-sacrifices-9969/ http://www.nytimes.com/2014/04/15/business/more-renters-find-30-affordability-ratio-unattainable.html?_r=1 Avg. Rate +j*

Rental Housing Crisis in the US

shared by jehall on Oct 27
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An examination of "the worst affordability crisis" in US history, according to the Secretary of Housing and Urban Development.

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Economy
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