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Home Economics

Release most Americans can not afford?

by Daniel Brown
2014/04/20
in Economics, HOME
2 min read
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American commitment to rental housing for anybody not a secret. Quite a large proportion of the population do not own real estate, and rental costs completely . This situation has its advantages, as the person is not attached to the foundation of your own home at any time and can safely move to a better place of work or study . Sale of old housing and buying a new involves many difficulties and inconveniences , and therefore is not given such a value of home ownership .

According to analysts TeleTrade, over the past 7 years, the demand for rental premises by the Americans grew mighty pace, eventually – rents have risen sharply . Today the situation has developed in such a way that many members of the middle class can no longer afford such a pleasure . At the same time , we should not forget that this category is considered the most ” nomadic .”

The market rent , there is one golden rule – the household should not pay more than 30% of their budget on rent and utilities for leased housing. However , now more than half of the tenants give 38 % of their income , and this applies to 90 cities and not only on the major metropolises . For example , the ratio of the magnitude of rent to income in New Orleans is 35% , although the historical average price for this city is 14 % … Even worse is the situation in Riverside, where half of households pay 50% , including communal . It is worth considering that the income of the residents have not grown since 2007 , analysts TeleTrade.

Over the past 6 years, the number of landlords increased by 6.2 million , while the number of owner-occupiers increased by only 208,000 . On the market are very few places for residential rent , and so in 2014 is expected to increase rent payments by another 4 %.

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