According to cbsnews, a report based on recent data from the Census Bureau American Community Survey states that the percentage of renters paying over 50 percent of their income increased from 22.8 percent to 26.4 percent. The foreclosure crisis, falling home prices, and tighter credit drove former homeowners into rentals and simultaneously prevented renters from moving on to homeownership, further increasing the demand for rentals and driving up costs. Renting expenses rose six percent from 2008 to 2011, while income of those renting dropped 3.2 percent. Although homeowners experienced a drop of 3.2 percent in housing costs, income fell 4.2 percent, increasing the burden of homeownership. Co-author of the report, Janet Viveiros says “We really need to be thinking about long-term solutions on the ownership side and making sure that renters have access to enough affordable communities.” Housing affordability affects the amount of money spent on food, healthcare, and other needs and wants that feed the economy, as MHProNews understands. Bottom line: The lack of job and income growth will keep the economic recovery in low gear.
