http://money.cnn.com/2014/05/01/real_estate/rent-spending/index.html?iid=A_E_News
The article, One in three Americans are spending too much much on rent, by Les Christie was posted on May 1, 2014
The article is about how about 1/3 of our population in the United States is now becoming very poor because of their rent. People pay more than 30% of their monthly median income on their households. In some areas, it can be as high as up to 66% of their income. This allows America to be the home to some of the poorest communities in the world. Many are afraid of being foreclosed and have gone into renting houses, this has made a huge demand for rental housing. Causing homeowners to flourish and renters to lose their money.
This is very bad for the economy as it is making many go bankrupt and also, some are having to leave their homes because of this. Also, many are having to not buy their necessities as they have no more money after their rents. This is making the economy go down very very rapidly, leaving homeowners and renters in two very different positions. Homeowners are exploiting the renters daily and soon the only people with money are going to be the homeowners. This needs to be stopped immediately before this effects the US even more than it has. If we don't stop it soon, many are going to be finding themselves homeless and without money to provide them shelter.
The people renting houses are not very likely to just decide to lower their prices if people are still paying the higher prices though. Yay! Another reason the economy will keep getting worse....
ReplyDeleteThere isn't an easy solution to this. Like Dominic said, people aren't going to charge lower prices if people are willing to pay higher prices (which they evidently are). Increasing workers' income to help with rent payment would affect employers. There just isn't a way to somehow add money into one part of the economy that needs it without affecting everything else.
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