(TheRedAlertNews.com) – In a new detrimental consequence from the Biden-Harris administration’s mismanagement of the economy, America’s middle class faces a new menace: skyrocketing rent costs.
Almost 40% of middle-class renters are now cost-burdened, threatening their financial stability and peace of mind.
While the government bickers over solutions, families are left struggling to make ends meet.
The escalating cost of renting has burdened nearly 21.8 million households, a figure not seen since 2012.
Rent prices have been climbing steeply, outpacing income growth and reversing progress made before the pandemic.
In fact, over the past three years, nearly 2 million more renters have become cost-burdened, a troubling trend affecting middle-class families across the nation, the BDC Network reports.
Amplifying the concern, severely cost-burdened households now account for 27% of this group, translating to more than one-in-four renter households dedicating over half of their income to housing.
Such a heavy burden forces families to make difficult choices, often sacrificing essentials like healthcare and education.
“Preliminary data from the Bureau of Labor Statistics shows that incomes in the second quarter of 2023 are up 5.7% year-over-year (1.7% after adjusting for inflation). And while these statistics are not available for renters specifically, other breakdowns show that recent wage growth is higher for lower-earners and non-white workers, who are both more likely to rent,” says an analysis by Apartment List.
The disparity between rent prices and income is glaring.
Median rents have surged by 23.4%, while incomes have only nudged up by 5%.
This imbalance leaves roughly four in ten middle-class households—earning between $40,000 and $121,000 annually—unable to keep up with rising rental demands.
The housing market squeeze has spread to 74 of the 100 largest U.S. metro areas, with states like Tennessee experiencing up to 37% of middle-class renters being cost-burdened.
Simultaneously, renters grapple with a marked lack of protections compared to homeowners, who at least have safeguards against foreclosure.
“We’ve added a lot of safeguards to make sure that people with a mortgage aren’t at a risk of foreclosure immediately if they fall behind, But for renters, there’s no equivalent,” commented Peter Hepburn, associate director of the Eviction Lab at Princeton University, .
Political leaders have begun to take notice, with housing costs emerging as a hot topic in the 2024 election campaigns.
New York state has already taken action by enacting laws to strengthen renter protections and cap increases, but similar measures are urgently needed nationwide.
The clock is ticking as America’s backbone—the middle class—is increasingly becoming burdened by untenable housing costs.
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