Tuesday, April 26, 2011

Study: Affordable Rental Housing Scarce in U.S.

 Harvard University study released today said that the share of renters who spend more than half their income on housing is at its highest level in half a century, the Washington Post reported today. About 26 percent of renters — or 10.1 million people — spent more than half their pre-tax household income on rent and utilities in 2009. The supply has not kept up with demand in part because of a shortage of apartments, a key source of new rentals. Developers cut back on such projects when the economy deteriorated in 2009, which drove down vacancies and boosted rents. Analysts say they expect rents to keep climbing as developers try to ramp up new projects and catch up with demand. In many areas, the demand is driven by families who lost their homes to foreclosure during the housing bust and ended up searching for rentals. Meanwhile, as the job market recovers, more newly employed young adults appear to be seeking their own apartments instead of living with their parents, putting even more upward pressure on rental rates, according to one of the study's researchers.

Florida  Minimum Wage is $7.25 so moderate income is $14.50-21.75 an hour ( two to three times minimum wage.  Moderate Income families spend more then half of their income on rent.