If your rent wasn't too high before...
The United States has a rental problem and things aren't looking good.
If your rent wasn't too high before...
The United States has a rental problem and things aren't looking good. There aren't enough affordable rental properties as is and—as Millennials move out of their parents' basements—things are going to get worse. Like, much worse.
The Atlantic breaks down the report from the Bipartisan Policy Center, positing that as Millennials grow the hell up, their parents are also going to want to downsize because mowing the lawn is hella annoying.
Many Baby Boomers, meanwhile, are expected to downsize into smaller rentals units where they won’t have to mow their own lawns.
Housing wonks have projected that we may need to build at least 3 million new rental apartment units in the next 10 years to satisfy all these people. And if you’re a renter just about anywhere in the country, you may already be feeling the crunch: As Cities reported last summer, it’s lately become cheaper to buy a home than to rent one in the vast majority of America’s 100 largest metros.
This problem will directly affect twentysomethings trying to live in or close to expensive cities like New York. But, it doesn't stop there. We should expect a trickle down effect that, ultimately, hurts America's low-income households the most.
But we have only 3.7 million rental housing units available in the U.S. to 10.3 million households living in extreme poverty. As the report’s authors add: "This mismatch would likely be even larger if we considered only those homes located in safe, amenity-rich neighborhoods with good-performing schools and access to jobs."
So, as Millennials move out and look for housing, the affordable properties will be harder and harder to find. Then, to meet the increased demand, older units will be upgraded with new appliances and the like, making them even less affordable for low-income families and widening the economic chasm.
Now, as rents continue to rise faster than incomes throughout the economy, it will be as important for cities to focus on housing these residents as those professionals for whom "affordability" means something quite different. In some markets, the report notes, strong competition for older units means that we may also wind up upgrading apartments once accessible to lower-income households with new amenities – expensive kitchen appliances, nicer bathrooms – that will only push those units permanently out of reach.
Jimmy McMillian for President in 2016? [The Atlantic]
That is some epic facial hair on Jimmy McMillan!— blunted1- Um, it's called supply and demand. Market forces will resolve the issue. If there's profit to be made from building rental properties, they will be built, increasing supply, and lowering costs. The rent/own dislocation is also a potential positive as it incentivizes home ownership, because it's more affordable to own. Mike Bertha seriously doesn't understand this enough to even casually mention it?— BennyFranklin
- Supply asks the poor to bend over, and demand finishes the job with a swift kick to their posterior. Your simplistic economics lesson hardly applies to housing for the poor. Public housing was not some socialist whim, it was a response to an inherent problem with our free market system; that is, it is not exactly in tune with or other national goals related to democracy, health/safety and human dignity. — bobcitydoc
- This article says nothing about public housing your simplistic rich vs poor economics less is wholly irrelevant. The only data used here is comparing currently available rental properties and the cost of home ownership. These two forces will find balance, and not at the expense of the poor. — BennyFranklin
- interpetation: more entitlements are needed to supplement the greedy - not the needy.— STEPHEN1988
- Perhaps the cities should treat the landlords as an asset rather than an opportunity to tax. We now have trash tax, gas liens from tenants, water liens too. If cities made the renters more responsable for their own actions the landlord would not have to constantly pay the bills for those tenants that take off in the dark of night leaving behind their bills but taking all the appliances etc. I am speaking of the small landlord. We pay for licenses. have the place inspected, pay net profit and business privledge taxes, although it is never a privledge to do business in Philadelphia. The landlord is not elegiable for a homestead exemption in the property tax. It is the landlord that pays the taxes that fudn the shcools, police fire dept rec centers libraries and infastructure in the city, The renters get a bargain. Shouldn`t they be held accountable for their utilities ?— patty b
- spot on, patty b. when the landlords just give up because the slim profit isn't worth all the work, the homes will crumble to the ground. the majority of Philadelphians cant qualify for a mortgage so the city will collapse. the landlords can only be pushed so far. I work 50 hours a week and own 5 rentals. i own the rentals with the hope of getting ahead in life. I'm not rich, far from it. but seemingly every other day, the city takes more and more. if i end up paying taxes on the assessments that were recently mailed out, I assure you that I'll be getting foreclosure notices. — write me in
- This is comical. Dont get me wrong. This report is accurate. But here in philly, the rents will be increasing even more. The recent tax increases will only compound the rate at which the rent increases. While liberals have been screaming about others paying their "fair" share, they thought this would benefit those who aren't responsible enough to own their own home, this will have the exact opposite effect. there you go. pay higher rent or get the f#%@ out!— write me in
- Why in the world would i want to own my own home in Philadelphia. We have the 2nd highest local tax burden in the nation and it will only get worse in the future. The tax rate of 1.25% is only the start. It will increase every year.— flyers2thecup
- This is really bad!! How the Hell does some idiot walk down the street and say that prop. is in
above average cond! one after the other .. crazy every one should appeal ...People will be in
a huge mess as all the rents will go sky high! This needs to be looked at immed.
How can You tell value by Looking at the bricks..never seeing the inside of the property they
4 times increase...No way will these prop..ever be sold at these insane assestments
the city has to relook this situation immed...as everyone in my neighborhood is going madd! over this.... and sooner is better... we all need to complain big time.and not let this happen— tajicat
