Wednesday, January 6, 2016
3 Reasons How We Know There is Not Enough Affordable Rental Housing
The lack of affordable housing is a growing problem, not just among low-income but also middle-income families. According to a recent report released by the NYU Furman Center/Capital One National Affordable Rental Housing Landscape, which focuses on research and debate on housing, neighborhoods, and urban policy, the supply of affordable rental housing has been unable to keep up with demand in the 11 largest cities in the U.S.
Not enough affordable rentals to go around
According to their report, there are three major indications that clearly tell us that there are not enough affordable rental properties to go around:
#1 - There has been an increase since 2006 in the number of low- and moderate-income renters who are paying 50 percent or more of their income on rent. This is referred to as being 'severely rent-burdened.'
#2 - In 2006, only 5 major metro U.S. cities reported having 50 percent or more of the population living in rental housing. These cities included New York, Los Angeles, Boston, Miami and San Francisco.
#3 - By 2013, four additional major metro U.S. cities joined the ranks, including Chicago, D.C., Houston, and Dallas. In addition, 9 of the 11 cities reported double digit growth in the number of renters, and 5 of the 11 cities had growth increase above 20 percent.
What this means
Increase in rent prices is not only hurting low-income but middle-income families as well. According to the housing guidelines established by the U.S. Department of Housing and Urban Development (HUD) years ago, 'affordable' means spending no more than 30 percent of annual income on housing costs. Clearly, that guideline is out the widow for more and more Americans.
When will the bubble burst? Where will people go when they can no longer afford their rent?
Read more at www.furmancenter.org/thestoop/entry/research-renting-in-americas-largest-cities