Many of today’s renters hope to become home buyers, but the escalating cost of rent is making the transition harder to accomplish. According to a recent article in Money magazine, U.S. apartment rents have jumped 18% over the past five years. Without adjusting for inflation, median rents have essentially doubled in the last 20 years.
Unsurprisingly, housing insecurity is also on the rise. Apartment List reports that nearly 1 in 5 Americans struggle with paying the rent. Approximately 3.7 million Americans have experienced eviction. Housing insecurity hits low-income renters the hardest, with about 27.5% of them reporting difficulty with rent payments.
Renters in higher income brackets are not exempt from housing insecurity. About 15% of renters making between $30k and $60k a year have missed a rent payment. 6% of renters earning $60k or more a year have missed a month’s rent.
There seems to be little relief in sight for pressured tenants. Thus far during 2017, apartment rents have progressively increased nationwide, averaging hikes of 0.5% to 0.7% per month.
Home ownership with a fixed-rate mortgage offers the best defense against escalating housing costs. Renters who plan to become home buyers should seek the advice of an Exclusive Buyer Agent! Your EBA can share information about down payment assistance programs, and provide home buyer education to help you meet your goals.
Click here to find an EBA in your area today, or call the National Association of Exclusive Buyer Agents at 800-986-2322!