Friday, March 29, 2024

New Report Confirms the Rent is Too Damn High in These U.S. Cities

*A new report from Apartment List has confirmed that the rent is too damn high in many metro areas in the U.S.

According to Apartment List, “in 19 of the nation’s 25 largest metros, a household earning the median renter income would be cost-burdened by the median rent. Of the 100 largest metros, the median renter would be burdened in 64 metros.”

According to the report, the national rate went from 49.5% in 2017 to 49.7% in 2018.

Among the biggest metros in the U.S., Miami has the highest cost burden rate at 62.7%, followed by New Orleans at 60.1%, New York and Los Angeles, are at 52.2% and 56.9% respectively, the report states. 

“Certainly, the worst offenders — places like Los Angeles, Boston, San Diego, Miami — these are places where it’s not always easy to build as many houses as you’d like, but also their economies have been very strong, so the increases in rental [costs] become an unfortunate byproduct of that,” Igor Popov, chief economist at Apartment List, told Yahoo Finance.

OTHER NEWS YOU MGHT HAVE MISSED: ‘Harriet’: On Becoming ‘Black She Moses’ – EUR Exclusive Red Carpet Coverage/WATCH

rent is too damn high
Photo: Depositphotos

By state, Florida has the highest cost burden rate at 56.5%, followed by New York, New Jersey, California, Colorado, Louisiana, and Connecticut. 

“We’re seeing that especially coastal cities — where adding new housing is difficult but economies are booming — those are the places where affordability issues are stacking up the most,” Popov said. “With that said, it is a national problem so even cities that aren’t necessarily in the housing affordability debate every day still have a lot of renters who are struggling.”

San Francisco, has the highest rent in the country but a cost burden rate below the national average because of rent control, Popov explained.

“A lot of the people who are able to live and rent in San Francisco are ones that have been in rent-controlled apartments for some time,” he said. “And so a good chunk of the city is covered by rent control. When you look at who’s actually able to rent in the market, a lot of families are able to afford it because they are basically paying below market rates.”

He continued: “The market rates in San Francisco are essentially the highest in the country. If you’re just moving to San Francisco and looking for an apartment, the prices are very high. But formally, the majority of people that are able to comfortably add rent are the ones who aren’t paying the market rate, but are usually in a rent-controlled apartment. Rent control often plays a role in these affordability numbers, often driving a wedge between the market rate that a new resident would pay, versus the rent-controlled rate the existing residents pay.”

We Publish News 24/7. Don’t Miss A Story. Click HERE to SUBSCRIBE to Our Newsletter Now!

YOU MAY LIKE

SEARCH

- Advertisement -

TRENDING