Report: Recession pushed number of renters paying over 1/2 their income for housing to record levels

[Amerigo Vespucci]

New Report Finds Renters Face Record High Affordability Problems

Recession Made Matters Worse and Rental Revival Threatens to Add to Rent Pressures
April 26, 2011 08:03 AM Eastern Daylight Time

http://eon.businesswire.com/news/eon/20110426005193/en/Rental-Housing/real-estate/rental-housing-market

CAMBRIDGE, Mass. & WASHINGTON--(EON: Enhanced Online News)--The Great Recession pushed the number of renters paying more than half their income for housing to record levels, according to a new report from the Harvard Joint Center for Housing Studies (JCHS). Released today at an event held at the Newseum in Washington, DC, the report “America’s Rental Housing: Meeting Challenges, Building on Opportunities” finds that even prior to the recession, long-term increases in rents and utility costs combined with falling renter incomes put strain on many renters’ budgets. The Great Recession made matters worse, increasing the cost burden on once-secure working and middle class Americans.

Today, one in four renters, or 10.1 million households, spends more than half their income on rent and utilities. Another quarter of renters, 26.2%, spends 30%-50% of their income on rent and utilities.

While severe housing cost burdens are still anchored among those in the bottom fifth of the household income distribution, over the last decade the number of renters even in the next two higher quintiles facing such burdens increased by one million households. In addition, more lower-middle income renters (56%, up from 38%) and more middle income renters (23%, up from 10%) are paying 30-50% of income for rent and utilities.

“In the last decade, rental housing affordability problems went through the roof,” said Eric S. Belsky, Managing Director of the Harvard Joint Center for Housing Studies and an author of the study. “And these affordability problems are marching up the income scale. In real terms, it means more people have less money to spend on household necessities such as food, health care, and savings.”

[wicket]

1. Adding in utilities, that is me

:(

[RaleighNCDUer]

7. Me, too, since the recession took away my p/t job.

With only my 'real' job, I'm paying well over 50% for rent and utilities. Who'd have thought that an extra $50-$75 wk could make so much difference?

[wicket]

8. It's so depressing

:(

[joeunderdog]

2. Modern Day Sharecropping.

They got their wish.

[sunwyn]

3. I understand this pain firsthand....being hungry is how I lost 60 lbs ina few months.

At least I have a roof over my head

[lies and propaganda]

4. i live in LA, this is very much myself and every one i know

I wouldnt leave here though, until it was the LAST measure.

[bobbolink]

5. Those of us in that bottom fifth *tried* to sound the alarm.

We just kept getting told that it was our own personal "bad choice" and "responsibility".

Now its the rest of ya'll's turn.

[valerief]

6. Isn't that most people all the time? It always was for me. nt

[Gormy Cuss]

9. Before the recession, most people spent 30% or less on rent.

In high cost markets many pay more than that but it used to be rare that people paid over 50% even in expensive rental areas if for no other reason than landlords are skittish about renting to people with such constrained resources.

eta to correct subject text