Although America’s recent Recession has come to an end,
America’s economy has not fully recovered. It is common to say that lower
classes in America receive the most burden from the economy such as struggling to
pay rent. However, because of America’s current economic status, struggling to
pay rent is not only a struggle for the lower class, but it has also become a daily
struggle for the middle class, too.
One out of every five households in American who rent make
between $45,000 and $75,000 a year and spend about 30% of their income on just rent.
These households are considered to be “cost-burdened”. Almost half of these
cost burdened renters are living in America’s most expensive cities and are
paying ridiculously high rent payments. Rent prices are said to be rising much faster
than the income received amongst the middle class.
But what is the reason for high payment rent checks? The
number of renting Americans and the amount of rent are rising twice as fast as
the overall inflation. Also, as mentioned earlier, Americans are choosing to
reside in America’s most expensive cities. As a result, renting has become
nearly unaffordable. Renters from every class are having to spend more and more
of the majority of their income on just rent alone.
This however, has not been the worst case struggling rent
payers in America have seen. In 2013, 50% of American household renters were
considered to be “cost burdened.” Of these renters, 25% were even said to have
experienced severe burdens. Severe burdens, meaning that 50% of their income
was used to cover just their rents. Compared to this statistic, American renters’
current position does not seem as harsh, but however, the current position has
not recovered.
The average income for renters in America nationwide is
$33,000 a year. While on the other hand, the average rent nationwide is $900 a
month. Because of these conditions, these middle class renters are left with
the only option of spending less and less money on food, savings, and
healthcare.
More and more Americans are preferring to rent homes and preferring
to write monthly rent checks rather than just making mortgage payments.
Families and people over 55 are said to make up 40% of renters nationwide. To
them, it may be seen as an easier alternative to making such a huge commitment,
but they are just being hurt in the long run.
No comments:
Post a Comment