According to Harvard’s University recent report, Joint Center for Housing Studies, soaring apartment rent prices affect all social categories. Until recently, only low-income citizens suffered the burden of rents, whereas now even middle-class renters feel it is impossible to cover the costs of apartment rent prices.
The America’s Rental Housing report is one of the most trustworthy surveys in point of U.S. apartment rent prices. The survey is conducted every year to determine the evolution that the market is taking. According to the most recent figures, the situation is not rosy as prices have grown significantly in 2015.
Market analysts have noticed that even renters with $30,000 or $45,000 income face difficulties in covering their rent costs. Things are even worse for the low-income categories, who rarely gain $15,000 per year.
The latter have but few possibilities. They usually spend their money on rent, drugs and food, so they rarely get to benefit of other services and products. Yet, they are not the only ones, who complain about the soaring apartment rent prices as renters in the middle-class barely manage to cover these expenses, too.
According to the new survey, renters who gain $30,000 to $45,000 per year use more than 30 percent of their income for rent costs. This means they will have to cut expenses, too, so the broader economy could be threatened in the following years.
Since the middle class has to pay bigger apartment rent prices, renters won’t have the necessary financial means to buy their own house. They won’t be able to save for their retirement, either, so the cutbacks will most likely continue for a wider period, which could have a strong impact on the U.S. economy.
Compared to the previous years, apartment rent prices have been through a small improvement. The fact that the middle class spends 30 percent of their income on rent is better than the 51 percent registered in 2015. However, percentages have soared in 2015 compared to 2013, market analysts have concluded.
According to the Washington Post, renters have but one solution to avoid big apartment rent prices, that is, to head to the less costly cities. Des Moines, Iowa is, based on statistics, the cheapest city in point of apartment rent prices, so it is worth considering a relocation.
The city may be small compared to New York, but the cocktail bars and the parks in the center of the city could attract visitors. Des Moines, Iowa has a growing real estate market and every investment that home-buyers make will eventually pay off, market experts have explained. Moving to a less popular city is, in their opinion, the only solution to avoid soaring apartment rent prices affecting all social categories.
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