5 minute read
There is a rent increase crisis in America
There Is a Rent Increase Crisis
Before Covid hit, the United States was in the middle of a housing crisis. One that got worse when the pandemic hit, an estimated 30 to 40 million people in America were facing the risk of eviction.
In what is called ”the Covid-19 housing crisis”, there has been an increase in foreclosures and bankruptcy—especially for small property owners. Conversely, there have been long-term harm to renter families and individuals, disruption of the affordable housing market, and destabilizing communities across the United States. moratorium, tenants are anxious as rent continues to rise. In Q3 of 2021, rent rose at 10.3 percent annually in professionally managed apartments, according to data from RealPage. The data analytic firm data showed that vacancy rates dropped below 3 percent for the first time in three years.
In a shocking turn of events, adjusted rents rose by $150 from the beginning of the pandemic to $1,580. However, these rents do not consider the prices of units owned by smaller landlords—the more affordable units.
During the pandemic, countless studies have been done, analyzing the pandemic’s impact on public health and the economic depression that has hit renters and the housing market. Studies have shown that Covid-19 has led to numerous job losses that have meant that many people in the United States cannot make rent payments. According to research, more than 20 million renters live in households with a Covid-19 related job loss. In July and March this year, the unemployment rates were anywhere between 11.1 and 14.4 percent. With communities of color experiencing job losses at higher rates than their White counterparts.
Job loss has been made worse by the recent expiration of pandemic unemployment insurance. Late last year, experts predicted that communities of color would be the worst hit when moratoriums run out, especially because communities of color are twice as likely to be renters than the White population and are more often than not from lowincome earners and are rent-burdened.
With the economy recovering, and eviction In October, national rent prices went up both short-term and long-term, with both one-bedroom and two-bedroom apartments increasing by 20 percent year-over-year each. For a one-bedroom home, the rent was $1,660, up 7.7 percent from last month. The rent for a two-bedroom home was $1,964, up 7.1 percent from the prior month.
Nationally, about 90 percent of all states experienced a rent increase for both onebedroom and two-bedroom homes. Irvine CA, Santa Ana CA, Scottsdale, AZ, and New York, NY experienced the highest year-over-year rent increases. On the other hand, Huntsville, AL, Durham, NC, and Philadelphia, PA experienced year-over-year price decreases.
The rapidly increasing rents are frustrating the effectiveness of emergency rental assistance— the only remaining federal tool that can help struggling renters. Landlords amidst the housing boom rush to sell their buildings, failing to renew their tenants’ leases. Many attributed their decision to the red tape that prevented them from accessing the federal rental assistance program.
“Landlords seem anxious to move tenants out so they can go out and take advantage of those higher rents,” said Zach Neumann, director of the Covid-19 Eviction Defense Project in Colorado. Several factors have contributed to the higher rates; in-person work and school, would-be homeowners remaining renters because they are priced in the market, and the overall lack of housing. In Atlanta, gentrification is in part to blame, with luxury homes replacing the more affordable options. In 2019, renters in Atlanta saw half or more of their salaries go towards rent. The rent increases pain extending to organizations such as the Veteran Empowerment Organization, which finds veterans a transitional home when they leave active duties.
If you are a renter at crossroads during this pandemic, research and learn what rights you are entitled to in your city. And though landlords are allowed to revise rent with every lease renewal, there are rules that they must abide by. In Oregon, the rent increase is capped at 7 percent, plus inflation—many cities in California have a similar cap.
ABOUT ERIC FRAZIER:
Eric Lawrence Frazier is President and CEO of the Power Is Now Inc. The Power Is Now is a multimedia company specializing in real estate and mortgage education for consumers and real estate professionals on various topics in real estate, lending, economics, and government policy since September 1, 2009. The financial and real estate information is distributed through BlogTalkRadio, iTunes, TuneIn, and other online radio platforms nationwide, as well as online TV and eMagazines. Connect with Eric Frazier DRE 01143484 | NMLS 461807 | Office: 800-401-8994 x 703 | Direct: 714-361-2105 and start your real estate investment journey or homeownership in safe hands.
ABOUT THE POWER IS NOW MEDIA
The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, headquartered in Riverside, California. We advocate for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com
Eric Lawrence Frazier, MBA. President and Founder, The Power Is Now Media
Work cited
https://www.nytimes.com/2021/10/18/us/eviction-rising-rent-cost.html https://www.bloomberg.com/news/articles/2021-09-09/rents-rise-in-all-big-u-scities-for-first-time-since-covid-hit https://edition.cnn.com/2021/09/30/homes/rents-going-up-in-us-feseries/index. html#:~:text=The%20national%20median%20rent%20rose,List%2C%20a%20 rental%20listing%20site.&text=Since%20January%2C%20the%20national%20 median,%25%2C%20according%20to%20the%20report. https://www.apartmentguide.com/blog/apartment-guide-annual-rent-report/ https://www.cnbc.com/2021/11/01/rents-are-bouncing-back-what-to-do-ifyou-expect-a-big-increase-.html
CORONA MARKET UPDATE
Leading the conversation about real estate
Corona
HOST: JENNY GONZALEZ
Real Estate Agent DRE#01249788 (951) 316-0374 jengonzalezre@gmail.com
GUEST: WES SPEAKE
Mayor of the City of Corona Wes.Speake@CoronaCA.gov 400 S. Vicentia Ave, Corona CA 92882 Tel: (951) 736-2370 Mobile: (951) 833-8060
JANURY 11, 2022 7:00 PM PST
AGENDA:
1. Market data on what’s happening in
Corona. Corona is on fire. 2. What is new in Corona for it’s residence and why you may want to move to
Corona if you are not already here? 3. Down payment assistance from Golden
State Financing Authority.
In this episode Jenny Gonzalez, Real Estate Agent with Keller Williams, license #01249788 is interviewing the Vice Mayor of Corona: Wes Speake. An update on new Housing Issues and what the City of Corona is doing to help with jobs and infrastructure.
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