The High Cost of Rising Rents
In 2021, the average rent was 17.6% higher than in 2020 with the rates continuing to go up this year. In October, the average rent was another 5.9% higher than it was last year, This means many Americans are paying approximately $360 a month or $4300 a year more in rent than just a year ago.
There are multiple causes for this:
1)The housing crunch 2) Landlords looking to make up for money lost during the pandemic when rents were frozen and evictions weren't allowed 3) Gentrification ...investors seeking to push settled residents out to make way for renovations and higher rents.
Also, the lack of affordable apartments and displacement of older adults occurs mostly when a building is sold and the new landlord raises the rents to fair market value.
All financial advisors recommend that housing costs should not exceed 30% of household income, but this is becoming more and more difficult to sustain - especially among seniors who are on fixed incomes. Housing vouchers have become more popular out of necessity. In September alone HUD issued 19,000 new housing vouchers.
Everyone's situation is unique, as will be your solution. It is not just older people who are being squeezed out- it is also young working people with families. Solutions such as moving in with other relatives or friends and sharing costs might be a solution you can manage, but the expectations must be made very clear before such a move is made.
Whatever your solution is, try your best to cut corners where you can, maybe pick up a part-time job and do your best to keep your head above water during these challenging times.
Need to find an apartment to fit your budget? Contact Carolyn, licensed real estate associate broker 718-644-8460