Initial jobless claims: the single most positive aspect of the entire economy
WEDNESDAY, FEBRUARY 21, 2018
– by New Deal democrat
About half of renters spend more than 30 percent of their income on rent, up from 18 percent a decade ago, according to newly released research by Harvard’s Joint Center for Housing Studies. Twenty-seven percent of renters are paying more than half of their income on rent.
This is a serious real-world issue. I have been tracking rental vacancies, construction, and rents ever since. The Q4 2017 report on vacancies and rents was released a few weeks ago, so let’s take an updated look.
In the second quarter of last year, median asking rents zoomed up over 5% from $864 to $910. In the two quarters since, they have remained at that level:
Here is an updated look at real. inflation adjusted median asking rents, showing that rent pressures on household budgets continued to rise in 2017:
|Rent as %
The big increase in unaffordability is unfortunately of a piece with the rental vacancy rate which, after appearing to have bottomed in 2016, tightened again in this report:
Like the median household income data, this shows renters’ income bottoming out in 2011-12, and rising since relative to rents as calculated by the ACS.