Yes, housing market has started to improve, while we are seeing indicators of growth it doesn’t appear to be gaining full steam. Despite the recovering housing market, many Americans are still not home owners; most still find themselves renting and worst can’t even afford the rent. Renting has gotten less affordable these days.
Experts say that rent is considered unaffordable if you pay more than 30 percent of your income on rent. Yet, many Americans are forking half or more than half of their income on rent! And that’s a fact according to a report from Harvard Joint Center for Housing Studies.
The rental market is tightening. With the hiking rents, it’s getting harder for renters to save enough money to consider buying a home. For those who cannot find affordable housing need to tighten their budget which would result in less spending on food and health care. It’s really a struggle to afford rent especially for low income renters.
If rent continues to rise at the rate they are now, it is dire for people with tough financial situations. In those cities where housing market is really tight, people who can move will have to move to cheaper parts of the country.