Rising Rents are Choking Off Renters, Creating Mass Vacancies
With rent prices skyrocketing, many renters find themselves between a rock and a hard place. Soon, many landlords will find themselves with a ridiculous amount of vacancies.
No matter what the situation, rent will always be a daunting task. For those who struggle to make that overwhelming monthly payment, know that you are not alone. Rent is on the rise across the board, and now more than ever, people face challenges to make rent on time.
A new survey conducted by the website Apartment List revealed the consequences of rising rent costs. Apartment List utilized the data from their 8 million users and polled 40,000 renters with various yearly income levels to research the effects of rent. What they discovered for the most part is that rent struggles are real and universal.
Data showed that as income level increased so did the ability to pay rent on time. Results pulled from users who make an average of $30,000/year show that 27.5% of them failed to pay their rents in full during the last three months.
Just below 15% of users with an income level at $30-60,000/year find themselves in the same situation. Out of the users with an income over $60,000/year, 8.8% could not make rent in the last quarter.
The burden of rent is worse now than ever.
In 2013 a similar survey found an average of 7% of renters struggled to pay their rents. The fact is that housing and apartment costs have become inflated, even in areas where the average income has yet to increase.
Apartment List also comprised data based on eviction rates. Metropolitan areas like Phoenix, Arizona and Atlanta, Georgia have a higher share of renters that reported a past eviction. Memphis, Tennessee was at the top of the list with a 6.1% eviction rate.
Of the nine areas reported, major cities in California made up almost half of the list. This included San Diego, San Francisco, Los Angeles and San Jose.
Additional information pulled from respondents showed that the percentage of rent-burdened households is decreasing, but they are still unusually high. Rent-burdened households refer to those where 30% or more of the income is being spent on debt.
Rent is a widespread problem that is not diminishing. In August, data from a survey published by Freddie Mac showed that almost half of renters had trouble finding affordable housing near their work.