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Increasing Rents Causing Problems for Tenants

  • Increasing Rents Causing Problems for Tenants

    Increasing Rents Causing Problems for Tenants

    The cost of renting apartments has risen rapidly across U.S. housing markets as the number of individuals renting households has increased faster than the number of available units. As these rental costs have gone up, a recently published survey has shown that almost one in five individuals struggle to pay their monthly due.
    Although most landlords are able to find tenants that can pay their rent, approximately 18 percent of those who responded to the survey weren’t able to pay the full due in at least one of the past three months. This data, collected by apartment-finding website Apartment List and consisting of approximately 40,000 respondents, also found that around 3.3 percent of respondents had been evicted from an apartment in the past, compared to 2.8 percent in 2015.
    The survey found that the percent of those unable to pay their rent in the recent past decreased as average income went up. More specifically, 27.5 percent of those earning less than $30,000 a year failed to pay their rent in one of the last three months while only 8.8 percent of those making more than $60,000 failed to pay their rent.
    The survey also tracked eviction rates based on geographic location and found that metropolitan areas were hit harder compared to costlier coastal regions, likely due to the increased effect of the foreclosure crisis. Analysts speculated that stronger job markets in coastal areas provided landlords with more affluent potential tenants.
    The data from the Apartment List survey suggests that the burden of rental costs is increasing from only a few years ago. The results can be compared to a 2013 Census Bureau survey which found only seven percent of renters weren’t able to pay their rent at least once in the last three months.
    To add onto the growing issue of rental costs, recent data has found that the share of households considered rent-burdened is still near historic highs and approximately 41 percent of renters say that it is hard to find affordable housing near their place of work.