Increased Rent Across the Nation
Typically, landlords in the U.S. will raise the price of rent due to changes in the retail market, inflation, or housing shortages.
Source: Christopher Furlong/Getty Images
In recent years, the increase has left many Americans in a difficult position as they feel they’ve been priced out of their homes or forced to search for a cheaper place to live.
Renters Forced to Move Home
A recent report released by Intuit Credit Karama reveals some shocking facts surrounding the increase in rental prices (via Newsweek).
Source: Freepik
According to their data, one-quarter of U.S. residents who rent a home are now unable to keep up with the payments. Meanwhile, one in five admitted they will be forced to move in with a friend or family member to save money.
National Rent Crisis
Reports suggest that the average price of rent in the U.S. is around 3.5% below the peak height of 2022. It’s also continued to fall over the past eight months, yet not enough for renters to feel it.
Source: Freepik
Senior economic research analyst Hannah Jones from Realtor.com said that while national rental prices aren’t climbing, renting a home is still over 20% more expensive than it was four years ago.
More Homes Leads to Cheaper Rent
Speaking with Newsweek, Jones said, “A continued increase in rental supply and a more favorable buying environment would each relieve some of the upward pressure on rents.”
Source: Freepik
“As the housing market remained largely unaffordable through 2023, many would-be buyers opted to keep renting, preventing any significant decline in rental prices.”
Impossible to Escape Renting Market
Harvard University released a report that sheds light on why so many people become trapped and cannot escape the rental market.
Source: Freepik
According to their data, over 50% of renters in America spend over 30% of their paycheck on rent and utilities alone. Meaning they have no spare cash to begin setting aside for a down payment on a home.
Impossible for the Younger Generation to Buy a Home
In an interview with Newsweek, Brooks Merkle, who works at Ansley Real Estate as a Realtor, spoke about why buying a home has become increasingly difficult for the younger generation.
Source: Freepik
“I think most people understand that they would rather be paying down their own mortgage and not their landlords, but for some people, finding the funds for a down payment on a house as well as enough cash flow to make their payments and continue their typical life that they love is a struggle that would spread them too thin,” she said.
Rent Becomes Legal Theivary
Americans across the nation have become victims of the ever-increasing rental prices, including Rose McCluskey, a resident of Fayetteville, Arkansas.
Source: Freepik
“Where are families supposed to live, or single parents?” McCluskey told Newsweek. “The enormous rent hike after COVID, I think, is disgraceful to all the people who paid rent the whole time. Screw the little people; the rich get richer.”
Greedy Landlords Want More
While McCluskey admits the period of little to no rent during COVID must have affected landlords, now they are asking for more money “because they can.”
Source: Freepik
“So rent is insane … like flushing money down the potty,” McCluskey said. “You aren’t getting ahead.”
Elderly Woman Experiences Rent Hike
Polly DeCesere is another American who had to experience a significant hike in her rent. In 2021, her monthly payment of $1,000 was increased by over $300.
Source: Freepik
“We are looking to move and even find that very difficult,” DeCesere told Newsweek. “We are on Section 8 and always being harassed by our landlord to move.”
Unfortunate Circumstances for DeCesere
DeCesere is a 71-year-old woman who claims disability benefits. The rental price increase has brought on even more financial stress during a period of economic instability in the states.
Source: Freepik
“I have been looking, but my roommate is not educated, so I find myself doing all of it, and it’s overwhelming and dropping me into a deeper depression,” DeCesere said.
The Solution to Crisis
Alica Sanchez, a rentals investor at Mamas Dinero, has proposed one solution to the crisis. She claims unused land could be reformed into affordable housing.
Source: Freepik
“Could we please turn in these nationwide shopping malls that went bankrupt into affordable house communities?” Sanchez said.