Half of US tenants can’t afford to pay their rent. Here’s what’s ahead | CNN
In recent years, the soaring cost of renting in the United States has left many households struggling to make ends meet. However, there is some hope on the horizon as an increase in the construction of multiple-unit buildings is slowly helping to curb skyrocketing rents. Nationally, rents have been declining for the eighth consecutive month, with the median asking rent dropping to $1,713, down $4 from the previous month and $63 from its peak in July 2022. Despite this improvement, the median rent is still 22% higher than in 2019, before the pandemic.
Millions of households feel the burden of high rent, with 22.4 million paying more than a third of their income in rent, commonly considered a cost burden. Shockingly, 12 million renters are severely cost-burdened, spending more than half of their income on housing. The situation has led to record-high numbers of people facing homelessness, and evictions are on the rise as pandemic protections have expired.
While rents are cooling off, the affordability crisis remains a pressing issue. The pandemic and an existing shortage of multifamily housing in some areas led to surging rents in 2021 and 2022. However, the rental market is beginning to stabilize thanks to increased supply, even in notoriously expensive cities like Manhattan.
The surge in multifamily building construction has been remarkable, with the highest levels in decades. Still, builders are grappling with rising costs, leading to forecasts of a 20% decrease in multifamily construction next year. Without a sustained increase in new supply and enhanced rental support, affordability will continue to be a significant concern for renters………
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Rising Dough
Considering the complex dynamics of the rental market, what factors do you think businesses and policymakers should prioritize to address the ongoing affordability crisis for renters?
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Businesses and policymakers should prioritize increasing the supply of affordable housing through streamlined regulatory processes and incentives for construction, while also implementing targeted renter assistance programs to support vulnerable populations facing housing cost burdens, thus fostering a more inclusive and sustainable rental market. Additionally, fostering collaboration between public and private sectors to develop innovative solutions and addressing systemic issues such as income inequality and stagnant wages is crucial for creating a resilient and affordable rental housing ecosystem.
Addressing the rental affordability crisis requires a thoughtful approach from both businesses and policymakers. if policies focused on putting more money in people’s pockets, making it easier for people to find homes they can actually afford.It’s about expanding programs that help families get a leg up and fostering partnerships between local communities and businesses to create housing that suits everyone’s needs.
I think buinessman and policymaker should take into consideration the location and the targeted people they are having living if they don’t want to change the pricing which is the obvious choice
I think it’s important for the policymakers should put more money into peoples banks accounts and raise their paychecks so they can afford their rent. Or rent should decrease. Either or should be implemented.
Businesses and policymakers should decrease the high land costs and the low density development. High interest rates and low inventory are contributing to the issue of shortages of affordable housing. If businesses lower the interest rates and the land costs, then renters will be able to raise their families.