Rent Is Increasingly Costly
Income is not keeping pace with Rental Costs
Everyone dreams of a rent controlled apartment. When we learn about how much costs have increased recently, it is no surprise that many wish they were able to pay pre-2000 costs for a rental. Unfortunately, that is not a reality for many renters today.
In fact, rental costs are skyrocketing. While this has been a fact of life for many years, it is increasingly unfortunate for the modern renter. Rental costs have increased more than renter’s income, leaving many renters financially strapped. Over the last half decade, rent in the U.S. has increased in price by 15 percent, while renters’ incomes increased by just 11 percent.
In California (as well as New Jersey, New York, and Florida), over 30 percent of renters are committing half or more of their monthly income to cover their housing and utilities. High costs are not unique to the coastal areas, either. In states other than Alaska, Wyoming, and South Dakota, 20 percent of renters or more are paying similar expenses. That means that one in five renters in the majority of states in the U.S. are putting at least half of their paychecks towards their rent and utility expenses. How is that sustainable? In short, it is not. Today’s renters need to figure out an alternative for sustainable living expense in the long-term.
Would you like to learn more about how you can lower your housing expense? Renting is now more costly than home ownership. To connect with a market expert who can guide you on the path to an affordable home, contact the Zwahlen Team. Located in Danville, we are here to ensure you get the California home you need for a price you can afford. Call us today!