For those struggling to get ahead or stay ahead, rent is often the biggest drag.
Why? The rental housing market has gone from bad to worse over the last few decades.
Time to do something about it.
Here's what I mean👇
Why? The rental housing market has gone from bad to worse over the last few decades.
Time to do something about it.
Here's what I mean👇
One of the biggest indicator of issues in the rental market is the # of rent burdened Americans.
To be rent burdened, you need to spend more than 30% of your income on rent.
Sound familiar?
That probably because nearly 50% of renters in the US are rent burdened 🤯
To be rent burdened, you need to spend more than 30% of your income on rent.
Sound familiar?
That probably because nearly 50% of renters in the US are rent burdened 🤯
This problem is getting worse, but not because of low income Americans.
The latest data on the increase in % of cost burdened renters is driven by middle and high income renters.
Mostly in urban areas.
The latest data on the increase in % of cost burdened renters is driven by middle and high income renters.
Mostly in urban areas.
Actually, the lowest income groups have seen seen a decrease in renters in recent years.
But there are more high income renters than ever (especially in urban areas).
Why? Because they can't afford to buy.
But there are more high income renters than ever (especially in urban areas).
Why? Because they can't afford to buy.
So who are worst off in terms of housing burden?
Millennials. They spend 46% of their income on rent.
Not surprising given that 11 of the 20 largest occupations in the US pay less than the housing wage.
Up next? Gen Z. Their rent burden is expected to mature at above 50%.
Millennials. They spend 46% of their income on rent.
Not surprising given that 11 of the 20 largest occupations in the US pay less than the housing wage.
Up next? Gen Z. Their rent burden is expected to mature at above 50%.
A big driver for this is the never ending increase in rent prices.
Before the pandemic, rent had risen for 29 consecutive quarters.
That's about 4x faster than general inflation.
Before the pandemic, rent had risen for 29 consecutive quarters.
That's about 4x faster than general inflation.
"Just build more!", they'll say.
Sure. We are. That's not the issue.
Multifamily construction is at a decades long high.
The problem is that most of it is large expensive buildings in the urban core.
Mostly in response to the increase of high income renters.
Sure. We are. That's not the issue.
Multifamily construction is at a decades long high.
The problem is that most of it is large expensive buildings in the urban core.
Mostly in response to the increase of high income renters.
Enough talk, let's do.
Traditional affordable housing has a lot of eyes on it already.
I'm trying to play a small part by focusing on young professionals.
With housing completely unaffordable in our cities, the young workforce just can't get a leg up.
Traditional affordable housing has a lot of eyes on it already.
I'm trying to play a small part by focusing on young professionals.
With housing completely unaffordable in our cities, the young workforce just can't get a leg up.
Why am I talking about all this stuff?
Real estate is a passion for me. Always has been.
And over the next few years, I want to turn that passion into good.
You'll be hearing more from me on this soon.
Real estate is a passion for me. Always has been.
And over the next few years, I want to turn that passion into good.
You'll be hearing more from me on this soon.
Big thanks to @Harvard_JCHS for all the work they do and all the facts they share. A lot of details here came from them.
If you’re interested in this stuff give them a follow !
If you’re interested in this stuff give them a follow !
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