Published By : 23 Sep 2015 | Published By : QYRESEARCH
Most renters in the United States have been facing a crisis of affordable housing. Ever since the housing bubble, the rate of home ownership has tumbled and this in turn has forced more and more residents toward home rentals. New construction has failed to keep up with the growth of the population in the country owing to the economic recession. At the same time, the weakening economy has also made it rather difficult for families and individuals to cover rent.
In addition to this, the number of people moving to cities such as Washington DC and San Francisco has gone up, giving a further boost to the scare housing competition in those cities.
If one takes a look at the picture in the long run, it becomes even more disturbing. Housing costs in the United States has been on the higher side for over decades. In 1960, less than one quarter of rented households spent around 30 per cent of their income or above only on housing. This is a pretax figure of what is considered to be generally affordable. Today, however, almost half of renter households are spending more than that on housing alone.
With time, other budget items have decreased. Clothing and food are two of the categories where spending money has relatively gone down. Over the past five decades or so, more and more renter households are dedicating increasing amount of their income toward housing.
According to a report by the Harvard Joint Center for Housing Studies and Enterprise Community Partners, at this pace, almost 15 million households are at the risk of being majorly burdened by housing costs by 2025. This means that these households will be spending over half their income only on housing. That number is presently at 11.2 million.