Across The Country, Renters Are Getting Crushed By Housing Costs [View all]

[geek tragedy]

Unfortunately, one in four working renters watched housing devour more than half of their paycheck pie in 2011, according to the latest Housing Landscape Report from the Center for Housing Policy. The report analyzed the period between 2008 and 2011, when the rate of renters putting more than half their income toward housing jumped nearly 4%.

http://finance.yahoo.com/news/across-country-renters-getting-crushed-213049653.html

Much of the strain on renters has to do with fallout from the housing crisis of 2009. Homeowners fled their underwater homes and flooded rental markets to downsize, driving up demand on a stagnant supply of properties and sending rental prices skyrocketing. At the same time, the job market floundered and people's take home pays dwindled –– basically a perfect storm in personal finance hell.

Homeowners who stuck out the crisis haven't fared much better, but their cost burden remained relatively stable throughout the economic recovery, according to CHP. One in five working homeowners experienced severe housing affordability challenges, versus one in four working renters. However, their income dropped 4% between 2008 and 2011.

Renting is the riskiest form of property occupancy, since it is guaranteed to be a money-loser. The rent is too damn high, and it is always going to go up. If you own, your housing payment does not go up so long as you get a fixed rate mortgage.

Renters and home owners both saw their incomes dive during the Great Recession. The difference, though, is that renters saw their housing prices go UP while owners saw their housing payment go DOWN.

Much of the strain on renters has to do with fallout from the housing crisis of 2009. Homeowners fled their underwater homes and flooded rental markets to downsize, driving up demand on a stagnant supply of properties and sending rental prices skyrocketing. At the same time, the job market floundered and people's take home pays dwindled –– basically a perfect storm in personal finance hell.
Homeowners who stuck out the crisis haven't fared much better, but their cost burden remained relatively stable throughout the economic recovery, according to CHP. O ne in five working homeowners experienced severe housing affordability challenges, versus one in four working renters. However, their income dropped 4% between 2008 and 2011.





Beware anyone who talks about trying to make owning one's home more difficult for the 99%.