Sharp increases in rents along with stagnant incomes over the past five years have helped create a dire situation for many of the country’s renters. A new report shows how those trends have actually been playing out for more than five decades.
Inflation-adjusted rents have risen by 64% since 1960, but real household incomes only increased by 18% during that same time period, according to an analysis of U.S. Census data released by Apartment List, a rental listing website.
Renters fared the worst during the decade between 2000 and 2010, when inflation-adjusted household incomes fell by 9%, while rents rose by 18%, according to Apartment List. That is likely because there were two recessions during that time and a housing bust in 2008 that drove millions of homeowners into renting.
The takeaway: The United States has grown much less affordable for renters for half a century and, barring a major change, is likely to continue doing so.
Source: Wall Street Journal.
These figures are national averages. I shudder to think what it would be like to try to rent in places like San Francisco.