By Suzanne De Vita | RisMedia
Housing in major metropolitan areas is moving beyond the means of many, with renters, especially, burdened by rising rents and standstill wages. Affordability has become so strained, according to a recent analysis by Zillow, that even cheap rentals are out of reach for the very segment they’re priced for.
Researchers at Zillow assessed income data from the U.S. Census Bureau against rents, discovering that low-income renters in the 25 largest metropolitan areas are spending much more than what is recommended on rent, even in locations where rentals are priced inexpensively for the market.
The consequence, the research shows, is a lapse in savings that could be disastrous for renters already severely financially strapped. (In a separate analysis, Zillow projected homeless populations in metropolitan areas should rents rise 5 percent in 2017, with stark repercussions.) Roughly 70 percent of renters have not saved three months’ worth of living expenses.