A record number of Americans can't afford their rent. Lawmakers are scrambling to help

[redqueen]

A new Harvard University study found that half of U.S. renters are paying nearly a third of their income on rent
...
The latest data from the Harvard Joint Center for Housing Studies, released in January, found that a record high 22.4 million renter households — or half of renters nationwide — were spending more than 30% of their income on rent in 2022. The number of affordable units — with rents under $600 — also dropped to 7.2 million that year, 2.1 million fewer than a decade earlier.

Those factors contributed to a dramatic rise in eviction filings and a record number of people becoming homeless.
...
After failing to make a significant dent in the problem over the last decade, state and federal lawmakers across the U.S. are making housing a priority in 2024 and throwing the kitchen sink at the issue — including proposals to enact eviction protections, institute zoning reforms, cap annual rent increases and dedicate tens of billions of dollars toward building more housing.
...

https://abcnews.go.com/US/wireStory/record-number-americans-afford-rent-lawmakers-scrambling-107013773

[RKP5637]

1. K&R!!!

[2naSalit]

2. And...

When you add utilities, it's usually half or more. That's before transportation, maint. and fuel, insurance. Is there any left for food? Maybe. SNAP you say? How many hoops do you want to jump through for $40 a month. have to report everything in your life and re-up every 6 months where one mistake and you lose it all and have to start from scratch in applying to be reinstated.

Were it not for housing subsidies, in my area, there would be 80% more homeless people including children and seniors.

[Joinfortmill]

3. This is a huge problem... Here in small town New England it has hit the middle class

Parents are building small apartments onto their existing homes for their grown children.

Here in N.E. the housing shortage is fueled by zoning laws that restrict building multiple housing coupled with corporate buying of existing housing for short term rentals. The bottom line is that in some cases, even if you can pay the exorbitant rents, there are no rentals.

We're in a mess, people.

[justaprogressive]

4. ...because coming up

with first last and security (approx $5,000) when you've been paying
1/3rd of you income for the place you're being thrown out of, is
virtually impossible!

[KPN]

5. Seems the media is finally beginning to give some real enough attention to this huge issue.

It’s about time. It’s one of the most serious and ultimately harmful symptoms of untethered capitalism in my opinion. It’s so far reaching and ultimately affects all families that are not independently wealthy.

Thanks for posting!

[MerryBlooms]

6. The only way someone is paying $600 or less in my area,

is if they're receiving rental assistance. You can't even rent a room here for $600, at least according to the ads I've seen.

[TexasBushwhacker]

34. Yup. As a boomer and renter, I doubt I'll ever be able

to afford to retire. I looked into subsidized senior communities. I make too much for the affordable units and not enough for the "market rate".

[NickB79]

7. A new apt complex is going up in my town

20,000 people in a spread-out exurb, about 35 min south of Minneapolis. Not much of a downtown to speak of; we don't even have a grocery store anymore. Just bars, churches, a hardware store, a few restaurants, a few gas stations, and a Dollar Tree.

1 BR units cost $1400. 2 BR units cost $2400. That's insane!

[jimfields33]

29. I'm actually surprised a progressive state would allow that

If a blue state is allowing this, where is the hope other states won’t.

[Doc Sportello]

8. I pay one third of my income toward rent - and feel lucky

I have a one bedroom house in a safe area with a yard for my dog. I feel lucky because I have a great landlord with a very reasonable rent for this area. It is too high for my income but I make it - barely. One bad outcome like him selling or a big financial hit and I would be on the streets. As others have stated, this country is way behind where we need to be on this issue. Hoprfully the Dems will win all three branches in November and will lead an effort to take this human tragedy on like it deserves.

[jayschool2013]

18. Yep

Gifted link to NYTimes story from December 2023.

New Legislation Proposes to Take Wall Street Out of the Housing Market
A bill introduced in the House and Senate would prevent hedge funds from owning single-family houses in the United States.

Democrats in Congress have introduced a bill in both houses of Congress on Tuesday to ban hedge funds from buying and owning single-family homes in the United States.

The bill would require hedge funds, defined as corporations, partnerships or real estate investment trusts that manage funds pooled from investors, to sell off all the single-family homes they own over a 10-year period, and eventually prohibit such companies from owning any single-family homes at all. During the decade-long phaseout period, the bill would impose stiff tax penalties, with the proceeds reserved for down-payment assistance for individuals looking to buy homes from corporate owners.

If signed into law, the legislation, called the End Hedge Fund Control of American Homes Act of 2023, could upend a growing sector of the housing market, and potentially increase the supply of single-family homes available for individual buyers. Homeownership, long a cornerstone of generational wealth in the United States, is increasingly out of reach for Americans as home prices and interest rates soar.

“You have created a situation where ordinary Americans aren’t bidding against other families, they’re bidding against the billionaires of America for these houses,” said Senator Jeff Merkley of Oregon, who introduced the bill with Representative Adam Smith of Washington. “And it’s driving up rents and it’s driving up the home prices.”

[MontanaMama]

22. THIS

Needs to happen.

[Backseat Driver]

30. Hedge funds also fund health benefit plans which are NOT insurance.

My kid used to have an insurance plan--no longer--same contribution--opaque benefits and they play to the savings of the unknown contribution of her employer, skirting insurance regulations and possibly ERISA ones. Nobody's heard of this outfit, and no reviews on-line. One cannot access further info about who accepts this plan unless one is enrolled. They don['t even do credentialing of providers. No other choice was offered. Wonder if her private employer (not a small one) is also an investor in the funding provided by this out-of-state hedge fund whose partners(?) will grant access to every enrolled employee's medical records???

[Doc Sportello]

33. Sounds like a good start

The housing issue is going to require a multi-agency approach - something tough to do these days - but maybe a Dem sweep would start the ball rolling.

[Farmer-Rick]

9. I thought of selling my farm

Because I was getting a lot of realtor interest. And taking care of a small apartment vs a farm seemed appealing

But then I looked up rental prices.....yikes. Even Condo prices are pretty high. I think I'll stick with my farm despite the work to maintain it.

[Carlitos Brigante]

10. K&Fuckin'R

[elocs]

11. Here in WI in my city, subsidized housing is nearly 1/3 of your income. Unfortunately there is a waiting list

of over a year and other than income, getting a place is based upon where you are on the list. In other words, I'm retired and poor, lived my entire life here, working for over 40 years but if somebody homeless who moved from the other side of the state last year gets on the list ahead of me, they will get a place before I do even though I have a great credit score (always paid my bills) and have been part of the community all my life. No, life is not fair.

[leftstreet]

12. DURec

[Lucky Luciano]

13. This is one area a Jill Stein voter I know hits hard at Democrats.

In highly Democratic cities with very sparse republican representation, housing is a huge problem and it often comes down to NIMBYism. Liberals in the cities like to talk a big game, but they don’t want things rezoned for affordable housing in their neighborhoods. Since the liberals are in total control of local politics in these cities, he easily blames them. He is not 100% wrong in this case, but the Supreme Court was enough of a reason not to be so generally obtuse and vote for stein.

He doesn’t vote anymore at all right now. Last president he liked was Carter.

[AllyCat]

20. I cannot believe the NIMBYism I hear from people who claim to be

“Caring Christians” and a few liberals. We had this decrepit, abandoned gas station right on the main drag in the historic district. A developer wanted to buy it and make a few affordable apartments since it’s in a busy street. Took YEARS to get it done, in no small part thanks to these folks screaming it would decrease their property values and bring crime to our neighborhood. But they were a-okay living next to a defunct gas station with peeling paint and crumbling pavement.

The apartments are built and are lovely. Nice addition to our neighborhood. Full almost immediately.

Dems need to get on this. Abortion, legalization of marijuana, and housing. We’d be unstoppable.

[senseandsensibility]

36. I don't doubt what you are saying about NIMBY, etc.

but blue states are more desirable, dynamic places with more job opportunities. That is going to drive up prices. Believe me, everything that the rest of the country is grappling with now has been true in my home state since the 80"s. It's been very tough for me personally and really put a damper on my younger and middle aged years. Almost everyone struggles with it and has for so long that it almost becomes part of the landscape and not worth complaining about because that's just how it is. I know that's not a good attitude of course, and my town is doing quite a bit to help low- income people. More low-income housing and shelters for the homeless are making some headway.

[Lucky Luciano]

38. Sure...they are the far more desirable places.

…but this problem goes beyond just making housing for very low income/homeless people.

Teachers, policemen, firemen, EMTs, many other middle class wage earners can’t afford to live near where they work. Zoning laws that city politicians don’t feel incentivized to fix are part of the problem. I’ve only lived in those cities and I’m fine, but I can understand my friend’s point of view here - it’s not republicans blocking better zoning laws as there are no republicans (who of course would be vastly worse). It does support his narrative of Democrats favoring the wealthy elites…like the Gavin Newsome types he trashes all the time - he was not impressed by Gavin attending a dinner during the full Covid lockdown at the French Laundry while telling others not to do that. Again, the idea that the elites get different rules is not lost on my friend. I agree with him, but the thugs are far far worse…he gave up on the lesser of two evils gamesmanship though whereas I have not…I hate the MAGAts with a white hot passion and can’t wait for karma to body slam them into the ground.

[senseandsensibility]

40. I'm a teacher living in one of the most expensive places in the country

Hubby and I have grappled with this for decades, so we're well aware. Both teachers. It took us twenty years with both of us working to save for our first home which was still barely within commuting distance. There's almost nothing you can tell me about people with decent jobs not being able to afford housing. And I've grown up with it for decades, since the 80's.

[wryter2000]

14. Under $600?

Is this is the Onion?

[malthaussen]

25. Believe it or not, there are a few such places.

I lived in a two-bedroom in the middle of Nowhere, Kentucky, where the rent was $400.00 a month two years ago. Now, there were certain wildlife issues (read: cockroaches), but the rent was really that low.

Not many places like that, especially in the areas where people actually live. $700 or $800 if you're lucky.

-- Mal

[wryter2000]

41. I had to laugh

I live in Oakland. "Nuff said.

[malthaussen]

42. I live in Oakland, too. Oakland PA. n/t

[hunter]

15. I'll say it once again: We need to rebuild our cities...

... turning them into attractive affordable places where car ownership is unnecessary.

First of all, everyone deserves a safe comfortable place to live.

Second, the people with the smallest environmental footprints generally live in cities, don't own cars, and enjoy mostly plant based diets.

Any society that cannot comfortably house and feed everyone is broken.

[dlk]

16. Excruciatingly low wages are a contributing factor

Let’s get real. The minimum wage isn’t enough to pay rent and corporate greed is largely to blame. Too many jobs don’t pay enough to live indoors.

[twodogsbarking]

17. America has not been a society for decades. We are an economy and a military.

Peace.

[SouthernDem4ever]

19. The buffers that used to be in place to avoid this situation have been removed

allowing a select few in this country to accumulate most of the wealth.

[MontanaMama]

21. A studio apartment here in western MT is $1000-$1200 a month.

I was just down in CO Springs with my kiddo scoping out places to live and it’s the same. One of the many problems with this situation is that venture capital firms AND mortgage companies are buying up single family homes and renting them out instead of selling them so there are fewer homes available for young people and families. These same venture capital firms and mortgage companies are buying land and building apartment complexes instead of single family homes. They are creating a permanent rental class of Americans who may never be able to afford a home of their own. Owning a home is the surest path forward to creating long term wealth.

[malthaussen]

23. Note also that the waiting list for subsidized housing is as much as two years.

Various municipalities have programs to subsidize the housing of low-income individuals, fixing rent on a sliding scale at 1/3 of the family's income. The waiting list for these units is at least 18 months to 2 years in most places. What are the people supposed to do in the interval?

-- Mal

[limbicnuminousity]

24. Building more homes won't do a lot of good

if investment firms buy them all up. It's going to take laws on the books to address this.

[moniss]

26. Great OP and

I started feeling in the real estate bubble years leading up to the financial collapse in 2007/2008 that the whole concept of sustainable market for housing was going to go out the window not just in single family home ownership but in rentals also. It is insane to believe that you can have a sustainable market for $300,000 houses when the average income in the market area is less than $40,000. But I saw that all over the state in Wisconsin. We all know how "easy, no questions" mortgages kept propelling the rapid artificial inflation of home prices. So it was the old "sell them on the basis of the monthly payment" rather than the actual rational valuation of the house along with the realtors being right in bed with the appraisers and mortgage lenders. Everybody keeping the spiral going and commissions flowing so they could "get theirs".

So now rentals, affected also by speculation, have lost any connection to sustainability for the income market in which they are located. It is the loss of rational valuation and business conduct that we see in other areas like automobiles. It is parasitic behavior to keep inflating rents/home pricing to the point where people can no longer afford to sustain the market. The old saying is "A bloodsucker eventually kills the animal". But in modern business it is common wisdom to bleed everything you can from every situation as fast as you can and then move on from the wreckage. That approach may get a few people a larger bank account but it doesn't mean they aren't parasites.

[Ohioboy]

27. This needs to be explained to the average MAGA

It's a case of the billionaires controling housing, period. I can see this this being falsely spun to the Magats as being caused by Biden and the Democrats. They try it every time.

[mathematic]

32. Billionaires don't control housing. Middle class homeowners voting out pro-development city gov do.

In this thread there is literally somebody complaining about an apt complex being built in a suburb and another person agreeing with them that this is a a tragedy that should not be allowed in blue states. Go ask them if they're billionaires.

Meanwhile, in the real world, if 200 households need homes and there are only 100 homes available, there will 100 households without homes. If you add 50 new homes to the market, regardless of price point, 50 fewer households will be without homes.

[Backseat Driver]

28. Rent renewal time here: Increase of $259; DH was able to get them to relent a bit.

Not up until April, 2024. Duh - Caught them charging us their own rental insurance premium monthly for almost the last full lease term after we provided document proof of carrying our own as well as a pest control charge never done; it's all been refunded.

[surrealAmerican]

31. This is why people are not convinced that the economy is doing great.

When you spend 1/3 of your income on rent - add food, insurance, and transportation - and you can't afford anything else.

[pecosbob]

35. IMO the increases are wholly driven by hedge funds.

Outlaw the practice and prices will drop.

[RubyRose]

37. I remember when multiple generations of a family

would live together in the same home. That doesn’t seem to be then case anymore.

[JI7]

39. They need to start restricting the use of homes as rentals

This is a problem in Canada also so they made it difficult for Chinese to buy homes. Becsuse Chinese investors were buying them as investments without any any plans to live in them.