As someone who is looking into renting a property, it intrigues me why apartment costs can be so high. We find that often individuals are “rent-burdened” meaning that at least 30% of their income goes toward housing. Apparently, the rental housing market has reached a historic high point. As of 2022 fourth-quarter rent-to-income ratios suggest that people are on average paying 30% of their income toward rent. This ratio only continues to go up, and fourth quarter findings are 0.2% higher than the third quarter ratio. The 30% we are seeing in 2022 is overwhelming as the 2021 numbers suggest an increase of 1.5% of income going toward rent. This can be extremely scary as individuals are looking for a place to live. Numbers such as these make people suffer through rougher living conditions to avoid the high prices many apartment complexes are charging.
The high prices for rent indicate that the economy does not care what social class you naturally come from. Many people find themselves to be luckier than others as the housing market has no consideration for people with lower incomes. This is a problem in the United States that is continuously found to be unsolved. Individuals who find themselves “rent-burdened” will work as hard as they can to make housing payments. These same people are living to work rather than working to live. As a college student, an issue like this can be concerning as it can be hard to have a steady income while participating in sports and classes.
Source:
Sherman, E. (2023, February 27). The rental housing market hits an historic high point (and that's saying a lot). Forbes. Retrieved February 27, 2023, from https://www.forbes.com/sites/eriksherman/2023/02/26/the-rental-housing-market-hits-an-historic-low-point-and-thats-saying-a-lot/?sh=5c823462f58b
This is interesting to hear how much the renting values have increased even though inflation is finally starting to come down a little bit. You are right, as a college student who is going to be looking to rent their first apartment in a few years, it is a scary thing to think about just living to work and not working to live.
ReplyDeleteOne of my overseas friends from Pakistan, who graduated last semester, mentioned the same problem. 20–25 percent of his monthly income is spent on rent, despite the fact that he shares an apartment with his pals. It, in my opinion, is a really worrying problem for college students or those who have just graduated.
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