According to a report from the Federal Center for Housing Policy, an astounding 10.6 million American families spend more than half of their income (pre-tax) on housing. Experts say that even this astonishing number is impossible to maintain. Due to population growth, low inventory, larger immigration numbers, an economy that is struggling, low investment cash available for investors, and a very high rental demand, affordable housing is extremely difficult to find. Rent is quickly becoming more expensive than mortgages in most areas, and because of recent supply and demand increases, the rent also rises.
Another reason for higher rental housing is the amount of foreclosures. Those who have just gone through foreclosure or bank repossession must leave quickly and, considering their circumstances, are unable to buy another home to move into. Therefore, those people are forced to rent, and landlords are then able to increase their rates because of such a high demand for those living spaces. Higher demand creates higher rent, as does lower supply.
There hasn’t been an increase in units to equal the increase in the number of renters – another reason for lack of affordable housing. Time and money are needed to renovate old homes into apartments, condos, and townhomes, and landlords still need to have the renovations approved before renting the property. This lack of new housing makes the search even harder.
National vacancies are at their lowest level in more than 10 years. The National Low Income Housing Coalition states that for just a “basic apartment,” a person needs to earn at least $18/hour, whereas most individuals (such as those in Vermont) earn only $11.60 per hour. This indicates that a lot of people are unable to afford even a basic apartment. Rental Roost offers a solution for this problem by helping renters find the right homes within their budget, while still maximizing on the need for a great neighborhood and other amenities.