Number of working family renters paying more than 1/2 their income on housing doubles.

[Sapphire Blue]

FOR IMMEDIATE RELEASE

Contact:
Michele Anapol
Center for Housing Policy
[phone] x226
[e-mail]


HOUSING CRUNCH NOT JUST FOR HOMEOWNERS:
NUMBER OF WORKING FAMILY RENTERS PAYING MORE THAN HALF THEIR INCOME FOR HOUSING DOUBLES


New Study Details Severe Housing Problems Among Renters and Homeowners for the Nation and 31 U.S. Metropolitan Areas, Finds Concerns Not Confined Only to Coastal Cities


Washington, DC (August 30, 2007) – The number of low- to moderate-income working family renters paying more than half their income for housing has doubled – growing faster than the number of working family homeowners with this problem –according to a new study entitled The Housing Landscape for America’s Working Families 2007 conducted by the Center for Housing Policy. Specifically, the study found that the number of working family renters paying more than half their income for housing grew 103 percent from 1 to 2.1 million between 1997 and 2005. The number of working family homeowners paying more than half their income for housing increased at a significantly slower rate, rising 75 percent from 1.4 million to 2.4 million during the same time period. This study also takes an in-depth look at housing problems in 31 U.S. metropolitan areas and provides specific affordability findings for working family renters and homeowners in these metro areas (see related detailed affordability “Rankings” for metro areas in this release).

“This new study reveals that housing cost burdens have increased faster among America’s working family renters than among working family homeowners,” said John McIlwain, chairman of the Center for Housing Policy. “Over the past several months there has been a tremendous amount of attention given to the problems facing homeowners with subprime mortgages. While these problems are significant and this attention is deserved, it is important not to lose track of the serious housing problems facing renters.”


“A Closer Look”

Nationwide Findings

Analysis of America’s Housing Needs

Almost 40 million households in America meet the study’s definition of working families – those households that work the equivalent of a full-time job and earn at least the annual minimum wage of $10,712, but no more than 120 percent of the median income in their area. From 1997 to 2005 the number of working families with critical housing needs – that is, those that paid more than half their income for housing, and/or lived in severely dilapidated conditions – increased 73 percent. Specifically, some 5.2 million working families experienced critical housing needs in 2005 compared to 3 million in 1997.

As detailed earlier, the biggest change has been in the number of working family renters paying more than half their income for housing. Between 1997 and 2005, the number of working family renters and homeowners combined with severe housing cost burdens rose from 2.4 to 4.5 million – an increase of almost 87 percent. The share of renters living in dilapidated housing has dropped between 1997 and 2005, but dilapidated housing still is more likely to be a problem for renters than for homeowners.

Central Cities, Suburbs and Non-Metropolitan Areas:
Critical housing needs are not confined to central cities. In fact, in 2005, while nearly 40 percent or about 2.1 million of all working families with critical housing needs lived in central cities, a similar number, 2.2 million or 43 percent, lived in the suburbs. The remainder, less than 1 out of 5, lived in non-metropolitan locations. When comparing working family renters and homeowners with critical housing needs, 51 percent of working family renters lived in central cities compared to 28 percent of their homeowner counterparts. Approximately 38 percent of renters with critical housing needs lived in the suburbs compared to 48 percent of working family homeowners.

Regions:
Since 1997, the highest rates of critical housing needs have been found in the West – 1 in 6 working families – and Northeast – 1 in 7 working families. However, all four regions have seen rising rates of critical housing needs from 1997 to 2005. Although the Midwest continues to have the lowest rate of housing problems among working families at 10.1 percent in 2005, it is the region with the most dramatic growth in critical housing needs at 80.4 percent over the eight-year period.


31 U.S. Metropolitan Area Findings

Analysis

Although the housing problems of coastal cities often make headlines, the sharpest increases in the share of working families with critical housing needs are found in other parts of the country. These areas include Denver – up 162 percent between 1995 and 2004, Charlotte – up 86 percent between 1995 and 2002 – and other relatively affordable places such as Kansas City, Pittsburgh, Indianapolis and San Antonio. Sacramento is the only West Coast city where the rate of critical housing needs for working families increased by more than 60 percent over the time period studied.

In addition to measuring changes over time, the study measured the rate of critical housing needs among working families in each of the 31 metropolitan areas studied. This share varied widely, ranging from a high of 28 percent in Los Angeles to a low of 6 percent in Columbus, OH. While critical housing needs were most severe in the West Coast cities of Los Angeles, Anaheim and San Diego, and the hot East Coast markets of New York and Miami, significant numbers of working families in every metro area – including those in Atlanta, Denver and Indianapolis – pay more than half their income for housing. In several markets, such as Los Angeles, New York and Newark, substantial numbers of working families also live in severely dilapidated housing.


Continued @ http://www.nhc.org/index/center-news-pr-082907

Universal Declaration of Human Rights

Article 25

(1) Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.

(2) Motherhood and childhood are entitled to special care and assistance. All children, whether born in or out of wedlock, shall enjoy the same social protection.

http://www.un.org/Overview/rights.html

[Tandalayo_Scheisskopf]

1. The cause of that around here is...

A hell of a lot of speculation in rental properties. Lots of apartments sit empty around here because of that, but the rents don't come down.

Of course, this being NJ, the property tax rates don't help a bit either.

Gawd, I want to get out of this fucked up state.

[HeeBGBz]

2. I'm one of them

It sucks never being able to relax and not worry about how to juggle all other expenditures in order to pay rent at the first of the month. You can't even take time off from the work you have in order to look for something that pays more because that takes away from sure-thing income for a maybe-they'll-hire-me roll of the dice. There is no breathing room.

I do like where I live now and will keep it as long as I can. I've been getting some more hours where I work now, so maybe it will ease a bit. My boss pays a fair wage and I don't fault him at all. I think it's getting very hard to survive on one person's wages. Unless you are the higher wage earning brackets.

[Tarheel_Dem]

7. I know that feeling....

I'm a working stiff myself. I'm in a situation where I pay the higher end of rents for this area, but I like where I live, and it's within 5 minutes of work. My dilemma is that I inherited a piece of property about six years ago that's just sitting there empty, providing no income & I still have to pay taxes on it. It's about 30 minutes away from where I currently live, and I have no interest in moving.

I have no idea who to sit down and talk to about what I need to do with the property since my Dad made me promise to keep it in the family. The house is in need of some serious renovations. I'm not a financially gifted person, but where does one start?

[Hekate]

8. Start with a Realtor who specializes in rental properties; ask what needs to be done to fix it...

You shouldn't let it sit empty too much longer, as it will deteriorate and will invite squatters and vandals. Talking to a professional will let you know how much work you should anticipate doing and how much money the property will earn. Take notes.

Second, interview several general contractors with your list in hand, get references, and get estimates for what it will cost.

None of the above research will cost you any money, but it will help you decide what to do next.

It might turn out that you actually want to live in it once it looks better. You could certainly save a ton of money on rent.

In my area a 30 minute commute isn't so bad -- but it's true that a 5 minute commute is wonderful. Maybe you just don't like the neighborhood or the house itself. Those are valid concerns.

In that case might I suggest a spiritual exercise to resolve your dilemma regarding the promise you made to someone who is now (I presume) dead.

In its simplest form, I suggest the following: Find some quiet time by yourself. Have a photo of your Dad and a candle. Light the candle as an aid to focusing your mind and intentions. If you know a prayer say one, as that is another way of focusing the mind. Otherwise just sit with it for awhile. And then just talk to your Dad. Tell him you have done your best to honor his wishes for the past 6 years but it's getting to the point where the property is a financial drag on you, and you are certain he never intended that. Thank him sincerely for wanting to take care of your future. Ask to be released from your promise. Sit with it a little bit more.

Best wishes,

Hekate

[Sapphire Blue]

10. Wouldn't want those homeless squatters to move into an available empty home!

* sigh *

[Hekate]

12. Sapph, you may abandon a house of your own for that purpose. Be my guest. nt

[Hekate]

13. Just wanted to add: housing here is wretchedly expensive.A single room now goes for $700/month....

That's a single room in a home, not a studio apartment. Landlords price the whole unit accordingly.

Mr. H and I live in our own home, but this affects us both directly and indirectly.

Our son moved to another state largely because he wanted to be able to buy a home of his own, which he was then able to do. Our daughter and her little boy, along with her new husband, continue to live in shared housing here.

We have friends in our age group, single women (widowed, divorced, never-married), all employed, who live in rooms in other people's homes... What will become of them in another decade's time? One will be 73 then, another will be 64, and so on.

This is a beautiful place to live and a hard place to finally leave. Aside from the coastal climate, it's a nice progressive sort of community with a lot to offer in the way of art, education, and politics. But there is NO affordable housing. Attempts to deal with the issue politically have had very limited success. There's a large commuter class who live in other towns and travel an hour or more to our biggest employers -- and as we found out the hard way when a mudslide took out the only freeway into here, too many of those workers are cops, firefighters, and other essential people.

I think most long-time homeowners here are completely unaware of what "no affordable housing" really means. For myself, due to my own thankfully long-ago struggles with housing that took over 50% of my paycheck as a single mom, I vowed never to forget, and I've always kept an awareness of the situation. I never fault those who struggle with housing here; I know they are not feckless, especially those who live on traditional women's salaries.

As to the poster who described himself as a "working stiff" with a vacant and unwanted piece of property -- perhaps he could simply let it go into the pool of available housing by selling it to someone who would be grateful to have it to live in themselves.

Hekate

[Tarheel_Dem]

15. Thanks Hekate.....

Sounds like a plan. I've even thought of having the house moved because of the neighborhood it's currently in, but that sounds really expensive. I've seen some wonderful lots for sale, with acres & acres of land.

I'll take your suggestion because I really do need some professional advice. I guess I thought it sounded kinda ridiculous to rent out the property, and continue to rent myself, but I really hate the neighborhood it's in. Thanks again.

[Hekate]

17. You're more than welcome. Best of luck to you!

:hug:

[Tejanocrat]

3. Who's the candidate on top of this issue?

[eridani]

5. Not sure, but--

--I think Kucinich and Edwards are your best bets here.

[Sapphire Blue]

9. The Candidate & the President:

Lessons from a Candidate Who Sought to End Poverty http://journals.democraticunderground.com/Sapphire%20Blue/348


I, President of the U.S., and How I Ended Poverty. A True Story of the Future.: http://journals.democraticunderground.com/Sapphire%20Blue/414

[Trillo]

4. Once during a conversation with our old landlord,

who claimed to belong to some kind of landlord association, many used the published military pay rate increases (a military town) to synchronize their rental increases with likely pay increases of their renters.

It's very discouraging when one's cost for housing is always increasing at a greater rate than one's increases in pay as one earns more. What's the point of working harder and taking more responsibility when no matter what you do, someone else always gets the monetary benefit?

Our various leaders have socially engineered a culture of economic parasitism, then extol its virtues and revel in its brilliance and superiority.

[cutlassmama]

6. Not surprised at all. We live in a relatively cheap apartment.

I was looking at the classifieds since my lease is up in November and could NOT believe the rents people are asking for now. We have made the decision to stay here and are hoping that the rent here doesn't increase too much. We pay $700.00 for a 2-bedroom, but the asking rental rates I saw are between $2,000 and $3,000. No joke. This is just in a year's time!

[Sapphire Blue]

11. No, it's no joke, and it's happening everywhere. Many more will join the ranks of the homeless.

[cutlassmama]

14. I just called my apartment office to see what my rent will be if

I renew my lease. They said at least $100.00/month. While that still isn't outrageous compared to other places I've seen, I'm SSDI and $100.00 month to me is A LOT of money. Good thing we have a van. We might be living out of it soon.

[sarcasmo]

16. More examples of that fine economy.