Rental Housing Becoming Less Affordable

Cambridge, MA, Dec. 11, 2013 -- Affordability problems for renters have skyrocketed over the past decade both in number and the share of renters facing them, according to a new report on rental housing from the Harvard Joint Center for Housing Studies.

The inability of so many to find housing they can afford dramatically impacts the health and well-being of U.S. renters, as lower-income households cut back on food, healthcare, and savings, just to keep up.

The report, America’s Rental Housing: Evolving Markets and Needs, finds that half of U.S. renters pay more than 30% or more of their income on rent, up 12 percentage points from a decade earlier.

Much of the increase was among renters facing severe burdens (paying more than half their income on rent), boosting their share to 27%.  These levels were unimaginable just a decade ago, when the share of American  renters paying half their income on housing, at 19%, was already a cause for serious concern.

Escalating rental affordability problems come at a time when the share of Americans that rent has increased from 31% in 2004 to 35% in 2012. In fact, the 2000s marked the strongest numerical growth in renter households in the last 50 years. As ownership rates fell, housing markets have adjusted dynamically to the increased demand for single-family rentals, with about 3 million existing homes switching from owner to rental occupancy from 2007-2011 alone.

On the strength of the surge in rental demand, rental vacancies have fallen, rents have climbed, and construction of new rental housing has picked up sharply, giving an important spur to the struggling residential construction market.

Rising rents combined with softness in wages has put the squeeze on affordability. The report points out that between 2000 and 2012 real median rents (adjusted for inflation) nationally increased by 6%, while over the same period the real median income of renters dropped by 13%.

“For many low-income families, the rental housing affordability crisis is like a game of musical chairs in which there is never a chair left for them,” said Chris Herbert, Research Director at the Harvard Joint Center for Housing Studies. 



Other Archived Articles

Former Starnet Chairman Wins Mayoral Election   Full Article
Point Pleasant, NJ, Nov. 7, 2014 -- Former Starnet chairman Bob Sabosik won his bid for mayor in Tuesday's elections in Point Pleasant.

Mohawk CEO Lorberbaum Discusses Firm's Growth   Full Article
Chattanooga, TN, Nov. 7, 2014 -- Mohawk Industries CEO Jeff Lorberbaum told the Chattanooga Rotary Club that his firm is investing $500 million in its existing businesses in a bet on an improving economy.

Economy Adds 214K Jobs, Unemployment Falls   Full Article
Washington, DC, Nov. 7, 2014 -- Employers added 214,000 jobs in October and the unemployment rate fell again, the Labor Department said.

Attendance at Cersaie Rises This Year   Full Article
Bologna, Italy, Nov. 7, 2014 -- Attendance at Cersaie 2014, the international exhibition of ceramic tile and bathroom furnishings held in Bologna in September, once again topped 100,000 visits, according to organizers.

Builders More Confident in Senior Housing Market   Full Article
Washington, DC, Nov. 7, 2014 -- Builder confidence in the 55+ housing market was up again in the third quarter, according to the latest release of NAHB’s 55+ Housing Market Index.

Housing Markets Improving at a Gradual Pace   Full Article
Washington, DC, Nov. 6, 2014 -- Markets in 59 of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the third quarter.

Planned Job Cuts Surge in October   Full Article
Chicago, IL, Nov. 6, 2014 -- Planned job cuts jumped 68% in October to the second-highest total this year, according to outplacement consultancy Challenger, Gray & Christmas.

Initial Jobless Claims Fall Again   Full Article
Washington, DC, Nov. 6, 2014 -- Initial claims for unemployment benefits fell by 10,000 to 278,000 in the week ended Nov. 1, the Labor Department said

Grosser Named Tile Person of Year   Full Article
San Antonio, TX, Nov. 6, 2014 -- Tile Council of North America presented its Tile Person of the Year award to Donato Grosser at the Total Solutions Plus event.

NWFA Renews Agreement With Wildlife Fund   Full Article
St. Louis, MO, Nov. 6, 2014 -- The National Wood Flooring Association said it has renewed its Memorandum of Understanding with the World Wildlife Fund.

Tarkett Hosts Second Sustainability Summit   Full Article
Chagrin Falls, OH, Nov. 6, 2014 -- Tarkett recently hosted its second annual Sustainability Summit in Cleveland, Ohio.

Gerflor Acquires Connor Sport Court   Full Article
Chicago, IL, Nov. 5, 2014 -- Gerflor said it has acquired Connor Sport Court of Amasa, Michigan.

Armstrong Illinois Plant Wins Sustainability Award   Full Article
Lancaster, PA, Nov. 5, 2014 -- Armstrong Flooring said its Kankakee, Illinois manufacturing facility has received the 2014 Illinois Governor’s Sustainability Award.

Services Sector Continues To Grow in October   Full Article
Washington, DC, Nov. 5, 2014 -- The services sector of the economy continued to expand in October but at a slower pace, according to the Institute for Supply Management.

Mortgage Applications Fall Last Week   Full Article
Washington, DC, Nov. 5, 2014 -- Mortgage application volume fell last week as interest rates increased, according to the Mortgage Bankers Association.

Businesses Add 230,000 Jobs in October   Full Article
Roseland, NJ, Nov. 5, 2014 -- Private employers added 230,000 jobs in October, payroll processor ADP said.

Earthwerks Names Head of Product Development   Full Article
Houston, TX, Nov. 5, 2014 -- Earthwerks has named Lindsey Nisbet head of product development and marketing strategy.

Linron Names de Beaumont VP Business Development   Full Article
Houston, TX, Nov. 5, 2014 -- Linron Co. has named Gilles de Beaumont, vice president of business development.

Domotex Asia Anticipates Larger Wood, Laminate Area   Full Article
Shanghai, China, Nov. 4, 2014 -- It will require four dedicated halls to house just the wood and laminate exhibitions at Domotex asia/Chinafloor’s 17th annual flooring show March 24-26 in Shanghai, organizers said.

Factory Orders Decline in September   Full Article
Washington, DC, Nov. 4, 2014 -- New orders for manufactured goods fell for second straight month in September on softness in the aircraft sector.