Search
 

Renters Facing Greater Housing Cost Burden

Changing economic conditions and shifting demographics are opening up the opportunity to focus on more affordable housing options.

By Sule Aygoren Carranza | Updated on December 09, 2008

AUSTIN, TX-The dramatic rise in housing prices has captured a great deal of attention in recent years. The interest centered, for the most part, on the for-sale side of the residential market, where low interest rates and the high availability of debt made the high-priced homes attainable for most households. However, prices rose on the rental side as well, resulting in substantial pressure being applied on the affordability of rental units, and combined with the economic downturn and the rising rate of layoffs, renter households have subsequently been shouldering an increasingly large cost burden.

This, says Richard F. Moody, chief economist and director of research for Mission Residential LLC, is “one of the great unappreciated ironies of our time.” Whereas much of the focus on past years has been on affordable for-sale housing, he states that it’s even more important to push for policies that promote the creation of affordable rental housing as well.

Citing data from the US Census Bureau’s 2007 American Housing Survey, Moody maintains that any policy changes and allocations of public funding aimed at improving housing affordability would do well to include the rental housing market. For one, there’s a significant disparity in income between renter and owner households. The median household income of owner households in the US was $59,886 in 2007, versus $28,921 for renters. Renter income accounted for 48.29% of an owner household’s income last year, down from 55.65% in 1993.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.