Renting is now awful for just about everyone

[davidn3600]

If you’ve gone through the painstaking process of renting a new apartment in the past few years, you probably faced some sticker-shock. Vacancy rates are low, really low. And despite ever-present scaffolding, construction in many cities is still slow, as new tenants move in but few move out. The result is that in almost every major metro area, the rent is, in fact, too damn high.

Basic wisdom (which was largely established by rules governing public housing eligibility) warns a healthy bank account means that one’s housing costs shouldn’t exceed about one-third of a person’s take home pay. While that might be a prudent suggestion because, after all, people do have other bills and savings goals, it’s become virtually impossible to adhere to for many who live in major metro areas.

A recent report from the Joint Center for Housing Studies (JCHS) at Harvard, puts some numbers on just how bad this problem is: About half of all renters in the U.S. are using more than 30 percent of their income to cover housing costs, and about 25 percent have rent that exceeds 50 percent of their monthly pay.

It’s not just the poorest city-dwellers who are feeling the rent pressure. As prices rise, even those who make median incomes are finding that their rent eats away at a more significant portion of their pay than it once did for those in the middle class. It’s also not just the Millennial crowd: This problem is also evident across different age groups, including Gen X and Boomers who never left the rental market, or find themselves back in it after the housing crash.

A big part of the problem is that fewer households are making the transition from renting to owning, which means more competition for limited inventory—driving rental prices up. Renters who would previously be able to qualify for mortgages are either finding that mortgage lenders are still super strict post-recession, or that there simply aren’t many homes in their price range—or both. “In normal times when homeownership was achievable you could get a starter home for between $150,000 to $250,000,” says Andrew Jakabovics, a senior director at Enterprise Community Partners, a nonprofit that focuses on affordable housing. “That segment of the market is basically dead.”

http://finance.yahoo.com/news/renting-awful-just-everyone-now-115800504.html

With new rules that now make it harder to qualify for new mortgages, this is the unintended result. More people are stuck renting which adds demand to that market and rent prices soar even higher than mortgages.

Stagnant wages and a government that clearly only cares about the welfare of corporations also doesn't help.

[grasswire]

1. another problem to home ownership is student loan debt

well known that many college grads simply can't buy a home because they are under-employed and carrying the debt burden. Unintended.

[randys1]

2. Rent control should apply far more often and in far more places than it does.

These disgusting puke fuck rightwingers buy up properties either to flip or rent out and gouge the people.

[Nuclear Unicorn]

3. Don't San Francisco and New York have rent control?

[LiberalElite]

10. New York City has rent control and rent stabilization - this

link explains the difference. http://www.nyshcr.org/Rent/faqs.htm#rsrc1

Both have been under relentless attack by the real estate industry for decades. They blame the laws regulating rent increases as the reason for a shortage of affordable apartments. They chip away at tenant protections with the help of legislators who take their donations. In this regard, many thousands of apartments previously protected by rent laws have been lost through "vacancy decontrol." Still virtually that is being built is "luxury" apartments with, e.g., marble floors and Poggenpohl kitchens. The rest of us who can make do with linoleum tile and ho-hum generic fixtures are increasingly out of luck. Affordable housing is a huge issue here and is one reason deBlasio was elected mayor.

[redstateblues]

4. I have a small duplex that supplements my

Social Security. I cashed out my retirement account after one of the market crashes. I took the hit and invested in the property. I don't gouge anyone and Wall Street gets nothing from me.

[randys1]

5. Not all, but in many cases rent control is needed where it doesnt exist.

Tremendous positive effects for all average people, yourself included, if we can control the sky rocketing prices of real estate.

[stevenleser]

11. I'm wondering if it would be necessary if we had a minimum wage that was a living wage

I think of rent control as one of those bandaids we have because we dont insist on a living wage for our citizens.

[randys1]

13. Rents go completely out of this world in so many places. Which drives real estate

prices, etc.

But I dont believe in real property (the legal definition of real property is land) ownership in the first place.

I dont believe any person or corp should be able to own any land.

Lease, yes; own, no.

[stevenleser]

14. If minimum wage had kept up with inflation and corporate earnings, it would have been $21.75 3 yrs

ago and probably around $23-$24 an hour now as a minimum across the country. If that was the lowest it could be anywhere, for instance, rural areas of the South, and higher priced areas had a COLA differential, I think we would be fine without rent control.

I think a lot of these band-aids have hurt the living wage effort by making it seem as if it isnt necessary.

[randys1]

15. Need both....Again, I am the wrong one to talk to..Unlike most Bernie supporters here, I am

actually a real Democratic Socialist and when it comes to land I make no apologies for what I consider to be common sense.

It makes no sense to allow the Koch Bros to buy Waikiki beach and forever until the end of time, if they keep procreating, keep you and me and our families from ever touching that sand.

And if the teaparty got their way, that is exactly what would happen. (Example, making a point, think about it)

So land needs to be owned by the people and the buildings that go on the land will be regulated also by the people.

[n2doc]

6. A starter home for 150K or less is still available in many places

Just not near the NE and west coasts. Down here in Savannah one can get a house for less than 150 that isn't in a hellhole.

It just depends on where you want to or have to live.

[fizzgig]

7. the husband and i are effectively locked into our apartment

we pay just about 30% of our income just on rent (we also pay electric) and a comparably-sized apartment in our city now costs 45% of our income and we'd still have to pay at least electric. we could decrease of cost of living by maybe 30-40 bucks a month, but at the cost of not having a washer/dryer in the unit and the loss of about 200 square feet. it's also cheaper in the outlying areas, but then we're just spending more on gas and wear and tear on the cars. our place isn't bad in terms of living space, but we're on the corner of a very busy intersection and the traffic and noise is really starting to get to us.

another huge obstacle for us in renting is that we have two cats. not only are fewer places accepting them, the cost of having them in the apartment is getting criminally high. i fully understand paying a pet deposit, but i don't know why i should be expected to pay a $500-$600 NON-REFUNDABLE fee upfront and then cough up another $50-$100 a month in additional pet rent on top of the standard security deposit.

affordable living in my city is almost non-existent, as is housing assistance.

i've devised a plan to start socking away money for a down payment on a mobile home, but that will take some time to come to fruition. so, for now, we're just going to stay put and count ourselves lucky we can still afford to live here.

[B2G]

8. 150 - 200K?

That will by you a starter home and a hell of a lot more in a very many cities.

[taught_me_patience]

9. Renting is great in Los Angeles

We rent for $2,750. Buying a house on our street would cost us $1.2MM. Interest and property tax alone would cost us nearly $4,000/mo.

[alarimer]

12. Having been single all my life, renting is the only option for me at the moment.

Buying (well, mostly coming up with the down payment that would be in the tens of thousands) is completely out of reach, even though I make a middle-class salary as an educated professional.

I do agree that rents are out of control, especially where I live in Annapolis. This area is completely outrageous.

The problem is that places with affordable housing are not places I want to live.