Newcomers Outpace New Housing in Least Affordable Rental Markets

A big wave of new homebuyers is outpacing new housing stocks in the country’s most expensive rental markets. Los Angeles, where renters spend roughly 50% of their income on rent, is among one of the highest. When 1,000 new arrivals came in, only 187 housing units were built. New York was 383 for every new 1,000 residents, and San Francisco was 193.

 

The middle class is who is feeling the squeeze. They are the ones fighting tooth and nail for affordable living spaces, not to mention the competition is as high as its ever been. The rent is going up, and incomes aren’t rising tick for tack with it.

 

Where you can find the best rent is in a place with a slow population growth like Pittsburgh, St. Louis, and areas where population growth and housing units are rising the same amount. In 2012, Chicago added 906 new housing units for every 1,000 newcomers. Renters there spend only 31% of their income on rent.

 

Most cities are trying to find a suitable remedy for this problem, like the mayor of San Francisco is pledging to add 30,000 units by 2020. Boston says they will add 53,000 by 2030. New York mayor, Comrade Bill de Blasio says he will add 200,000 units in 10 years. But he’s a communist so who knows when that will get done and where the money will come from.

 

Building new units will help this problem, but in these expensive cities, building at a price that middle income citizens can afford is a difficult task. Some cities make this a bit easier by letting homeowners add accessory units. People can turn their garages, attics, storage rooms into living spaces and rent them out.

 

The middle class is facing challenges they haven’t had in the past and it is creating problems. Some people want the government to subsidize middle-income households, but it is important to have a middle class. Who knows what will happen in the near future?

 

Stay tuned!

 

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