Renters cannot expect any sign of relief this 2016 for housing rentals. Reports from CNN Money suggests that this year, rents will still continue to rise though the pacing will be slower in some cities in the U.S. Based on the same report, almost half of the renters in the United States will not be able to afford the rent so experts' advice tenants to keep 30 percent of their monthly income for housing cost. Other things that renters should not expect are as follows.
Housing rentals will not go down too soon, figures show
From 2001-2014 inflation-adjusted rents have increased to 7 percent while income has dropped to 9 percent. A new apartment median-rent ballooned to 26 percent increase in 2012. Experts predict around 3 percent to 5 percent increase in rent on national level, soaring higher than inflation.
It will not be easy to make ends meet for middle-income families
Even middle-income families will struggle to pay their rent. Based on Real Estate Special Report, burdened household with $45,000-$4,999 income has jumped to 21 percent in the last 10 years from 12 percent. Renters who spend more than 30 percent on housing rent from their income soar to 21.3 million last year based on the study from Harvard's Joint Center for Housing Studies.
New construction will not keep growing demand
Even with new construction in the market, the rate of vacancy is still very low that it will take a year to catch up with the demand. New inventory also are of high-end which won't help much with rental affordability.
Paying for a down payment will prove to be even harder
As renters are expected to pay more for housing rents, it will be more difficult for them to save a portion of their income for the down payment of their dream home. This will force renters to rent a house far longer.
