The rent squeeze continues

From the WSJ:

Renters Spent a Record-High Share of Income on Rent This Spring

The rental squeeze is getting worse, according to a new report by Zillow, as people are paying the highest-ever percentage of their income on rent.

Renters can expect to pay 30.2% of their income on rent, according to a Zillow analysis of rental and mortgage affordability in the second quarter released Thursday. That is the highest percentage ever, said Zillow, which has data going back to 1979.

The number is significant in part because it shows rental burdens creeping past 30%, which economists consider an affordable proportion of income for people to pay on rent.
Between 1995 and 2000, renters on average spent just over 24% of their incomes on rents.

“Our research found that unaffordable rents are making it hard for people to save for a down payment and retirement, and that people whose rent is unaffordable are more likely to skip out on their own health care,” said Svenja Gudell, Zillow’s chief economist.

Rental affordability worsened in 28 of the 35 metro areas covered by Zillow. It remained especially poor in the New York area and pricey West Coast cities. Los Angeles renters could expect to pay 49% of their incomes in rent. San Francisco wasn’t far behind, with renters paying 47% of their incomes on rent.

Even in New York and northern New Jersey–long considered a pricey place to rent–affordability has worsened significantly. Renters in the city historically paid about 25% of their incomes on rent and now pay 41%.

In Miami, a city that was long considered affordable but has been dramatically transformed by luxury condos, renters now pay 44.5% of their incomes on rent.

Renters have been becoming increasingly burdened thanks to a combination of rents rising due to increased demand and limited supply and income levels remaining relatively flat. That has put a squeeze even on working, middle-class households.

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9 Responses to The rent squeeze continues

  1. phoenix says:

    Post Sandy- which beach areas are the best, preferably with a boardwalk (little kids coming with us), traveling from NNJ.

  2. banco pop (from previous threads)-

    I won’t die, mf’er! You and that micro-aggression officer can go start a native American circle jerk…

    “BTW clot died RIP dear brother…….he fell off a pontoon boat in Cayuga Lake after assaulting a micro-aggression safety officer on the Ithaca Commons….”

  3. Trigger warning here for all you faggots who can’t take a joke…

  4. juice (1)-

    I at least have a corkscrew with blade on me at all times. Usually, I carry or have at hand even better weapons than that. Any she-male that thinks I’m doing the horizontal tango had better pack a lunch.

  5. Anon E. Moose says:

    What $2,000 in rent buys around the country

    This is an evergreen style of real estate story. I’m curious what neighborhood the NY studio is in, because frankly I’d have thought the min point of entry was higher than that.

    We just need to keep telling ourselves that Manhattan proximity is worth it; or hope that the market will hold on until we’re ready to cash in our chips.

  6. Njescapee says:

    6 Moose you are no different than the ‘locusts’ you so often criticize. Pot called kettle black once again.

  7. D-FENS says:

    Oath Keepers to Arm 50 Black Protesters in Ferguson with AR- 15’s for an Epic Rights Flexing March

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