Record Number of Americans Struggle with Unaffordable Rent Increases
DENVER — Rent Soaring Beyond Reach for Millions
Single mom Caitlyn Colbert watched as rent for her two-bedroom apartment doubled, then tripled, and then quadrupled over a decade in Denver — from $750 to $3,374 last year.
Every month, Colbert, a social worker and a single mother of three, faced agonizing decisions when it came to allocating her limited financial resources. Rent payments or swim team fees? Rent or school supplies? Rent or groceries? She often received eviction notices giving her just 30 days to pay with late fees.
Millions Suffering from Rising Rental Costs
As the crisis of unaffordable rent increases intensifies, millions of Americans, especially people of color, find themselves in similar situations. This crisis stems from rising inflation, a shortage of affordable housing, and the expiration of pandemic relief measures.
A recent report from the Harvard Joint Center for Housing Studies highlighted that a record high 22.4 million renter households, equivalent to 50% of renters nationwide, spent more than 30% of their income on rent in 2022. Furthermore, the availability of affordable units, with rental costs under $600, dropped to 7.2 million, a decrease of 2.1 million in the past decade.
Consequently, these factors have contributed to a rise in eviction filings and, alarmingly, a record number of people experiencing homelessness.
Action Needed on Housing Crisis
Realizing the urgency of the situation, state and federal lawmakers are making housing a top priority in 2024. To address the crisis, various proposals have been put forth, including eviction protections, zoning reforms, capping annual rent increases, and allocating billions of dollars to construct more affordable housing.
Recent history only exacerbates the impact of the unaffordability of rent. This stark reality is reminiscent of the Great Recession in 2008 when foreclosures drove around 10 million Americans from their homes.
Desperate Times for the Least Fortunate
The fallout arising from the unaffordability of rent has hit hardest for renters earning less than $30,000 annually. Even after accounting for rent and utilities, on average, this group is left with a mere $310 per month, making it nearly impossible to cover other necessary expenses, such as food, healthcare, and retirement savings.
Real Lives, Real Struggles
In a bid to cut expenses, Caitlyn Colbert, in Denver, saw her bathroom roof cave in from a leak. Despite her monthly rent increasing by $200, her landlord neglected to address the pressing issue. This experienced social worker moved in with her family and applied for a low-interest loan to purchase a home.
In Auburn, Massachusetts, tenants at the American Mobile Home Park, predominantly seniors on fixed incomes, are grappling with rent increases as high as 40%. Struggling with the additional $345 per month, individuals like Amy Case must desperately source additional funds to afford essential medications for her brain tumor.
The Ripple Effect on Mental Health and Development
More than just a matter of economics, unaffordable rent and the subsequent housing turmoil have far-reaching effects, particularly on children. According to a study from Princeton University’s Eviction Lab, approximately 40% of those facing eviction annually are children, translating to around 2.9 million individuals. The research additionally highlights the profound impact of housing instability and eviction on children’s mental health and overall development.
Policies, Investments, and the Way Forward
Both federal and state politicians are cognizant of the need for immediate action. Congress is actively developing a bill to expand the federal program granting tax credits to housing developers who offer low-income housing units. Moreover, lawmakers are proposing increased rental assistance and larger funding for housing vouchers.
Colorado legislators, for example, have introduced a bill to restrict the reasons for eviction, eliminate filing fees for tenants, and lift local restrictions on homeowners renting out separate units.
States like Washington and Massachusetts are also responding with bills aimed at affordable housing around transit hubs, rent control, and substantial investments into affordable housing development.
The Grim Reality for Those Affected
While legal, financial, and programmatic efforts are underway to stem the housing crisis, individuals like Ann Urbanovitch, facing debilitating rent increases in Massachusetts, are unsure of their future dwelling options.
States across the nation, including Colorado and Massachusetts, are taking action to address the rental crisis. The consensus is that a failure to act imminently can lead to an irreparable, spiraling housing crisis.
Author: Journalist
