Rising Concerns Over Housing Costs
According to a recent Gallup poll, the cost of housing has become a major concern for Americans, ranking second only to inflation. This marks the highest level of concern since Gallup began asking the question in 2005.
Persistent High Rents
Despite some areas experiencing a cooling off or slight decline in rents, overall rent prices remain significantly higher than pre-pandemic levels. Over half of all renters are paying more than a third of their income towards rent, making it difficult for average and low-income renters to afford housing.
Factors Influencing Rent Trends
In regions where rents have decreased, this is often due to reduced demand or increased supply. Higher-income renters moving into homeownership and new multi-family units becoming available have eased pressure on the rental market in some communities. However, nationwide, there is still a shortage of apartments to meet the demand, keeping rents high.
Market Challenges and Government Intervention
Building more apartments alone will not make housing affordable for the lowest-income renters. The rent these individuals can afford does not cover the costs of building and operating the apartments, representing a market failure that necessitates government intervention. Rental subsidies are required to make these apartments affordable.
Impact of Corporate Ownership
Research indicates that corporate landlords are frequently among the worst actors in the rental market, often engaging in serial evictions and maintaining uninhabitable properties. Limiting corporate ownership of rental units could help create more stability for low-income renters.
Rising Evictions and Homelessness
Following the expiration of pandemic-era eviction protections and resources, eviction filings have increased, reaching and often surpassing pre-pandemic levels. This has contributed to historic levels of homelessness in many communities across the country.
Solutions and Recommendations
To address the housing affordability crisis, experts suggest increasing rental assistance and repairing or building more affordable apartments. Making successful pandemic-era programs permanent, and rebalancing the power in the housing market through robust tenant protections, are also recommended measures.
