The rental crisis has reached new heights as the average American’s monthly rental payments are skyrocketing and the number of vacant homes has skyrocketed.
A new report by The American Council on Education and the American Enterprise Institute (AEI) shows that while many families are struggling to keep up with rent, the rental shortage has left many of them facing a housing shortage.
“It’s been pretty good to see the supply of homes increase in recent years, but the rental market has not kept up with demand,” said Laura Hochman, AEI’s senior vice president of research and analysis.
“This is a great time to look at rental demand, and we’re not at a shortage of homes.”
In addition to rising rents, the number a household needs to rent has doubled since 2005.
The report also found that renters are more likely to be renters than homeowners.
The median household income of renters rose from $38,000 in 2005 to $49,000 this year, a jump of nearly $10,000.
Hochmans research also shows that the median income of homeowners has declined since 2005 from $62,000 to $47,000, but has increased over the past five years, from $53,000 last year to $58,000 now.
“A housing shortage is not a problem that needs to be solved.
It’s a problem of supply and demand,” Hochmen said.
The National Association of Realtors reports that a third of U.S. renters are renters.
But in many cities, a growing number of renters are finding it difficult to afford a place to live because they lack a mortgage, credit cards, or a down payment.
The housing shortage has driven the median rental price of homes in the U.K. to more than $1 million, which is higher than in the United States, according to the Financial Times.
The Times cited the number-one reason why households have less money to pay rent in the UK was because landlords were unwilling to lend to new-build apartments.
“New-build homes are often more expensive than existing-build housing, which makes it difficult for people to pay down their mortgages,” the Times quoted Peter Dyson, head of mortgage research at CBRE, as saying.
In some cities, the average rental income for renters is nearly double the median household wage.
For example, in New York, renters earn $46,000 per year.
The average income of a renter in Seattle is nearly $61,000 a year, according the city’s Department of Housing and Community Development.
But the median salary of a homeowner in Seattle, where the median rent is $1,900, is $73,000 — more than twice the average household income.
Henshaw said there are two main reasons why renters are less able to afford housing: One is that a large number of people are moving to the cities, and a large share of those renters are young.
“Many people are finding that they can’t find affordable rental properties,” Hensham said.
“People are being priced out of the market.”
But Henshaw says this is not only an issue for renters, it is also an issue in cities such as Seattle, San Francisco, and Los Angeles, where a large percentage of people now live in a “suburban” environment, which means the housing market is more competitive.
“That means more people are priced out because they are unable to find a place,” Hinshaw said.
Meanwhile, the availability of new-built homes has been rising steadily in the past decade, as new construction has replaced older buildings.
According to the latest figures from the U, Census Bureau, the total number of new homes built in 2015 surpassed the number built in 2000.
But according to a new report from the Real Estate Board of Greater Los Angeles (REBL), the number is expected to increase in 2020.
“The housing crisis in the region has hit the middle class hardest, and many renters are left out of this boom in construction,” said Henshall.
“They’re finding it harder to make ends meet.”
In a statement, REBL said that while the recession has left most of the middle-class families struggling, it has not affected the housing supply.
“In fact, in many areas, the supply has increased significantly over the last five years and has been a boon for housing affordability,” REBL CEO and president Dan Wiedefeld said.
He added that “we are proud to be a part of the community that supports affordable housing.”
In some areas, such as Los Angeles and San Francisco — two of the largest cities in the nation — homeowners are paying much higher interest rates than renters, while renters are paying lower rates than homeowners on average.
However, there is a growing trend of higher interest rate borrowers in these cities, as interest rates have fallen to historic lows.
“These borrowers are using more cash, which has allowed them to spend less