Shopping Cart
Your Cart is Empty
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

  Housing Problem Solvers Company


1201 West Peachtree Street, Ste. 2300,

 Atlanta, GA,30309

Housing Problem Solvers


Apartment Rents Grow Faster than Incomes

Posted on September 8, 2015 at 1:54 PM
The average employee isn’t getting a big raise this year—but apartment rents are growing more quickly than ever.
“Across most markets, renters are paying a higher percentage of their incomes in rent,” says Luis Mejia, director of U.S. multifamily research with the portfolio strategy division of research firm CoStar.
That’s not stopping apartment rents from going up. That’s partly because the average income is surprisingly high for households living in rental housing with unrestricted rents. These households can, on average, afford to pay and they don’t have that many attractive alternatives. For now, for-sale housing is not a lure for these renters, who may not have gathered the necessary funds for a down payment, according to experts. Eventually, however, they may look for cheaper housing in other neighborhoods, bidding up the prices for market-rate apartments in new areas and gentrifying new neighborhoods.“Eventually, budget-constrained renters will look for more affordable options in neighborhoods that haven’t been exposed to significant demand, or are more distant from the central districts but still accessible to employment centers,” says Mejia.
Market-rate renters have (relatively) high incomes
Most of the renters who live in “market-rate” apartments, in which the rents are not restricted by affordability programs, have enough income to pay for current rent increases, at least for now, according to researchers. “The average annual household income for residents of market-rate apartments is around $85,000, well above typical household income for the U.S. populace as a whole,” according to Greg Willett, chief economist with RealPage, Inc., a company that provides property management software for the multifamily industry. Willett’s data is based on the 10 million apartments that use RealPage’s software.
“We think that info pulled from market-rate apartment users of RealPage products lines up pretty well with the characteristics of the market-rate stock that exists in the U.S. as a whole,” says Willett. For example, the proportion of class-B and class-C stock is about the same in Real Page’s large sample as in the U.S. overall.
The average income of $85,000 that RealPage reports is not as high as it might sound at first, since many of the households may have two or more people earning incomes. However, it’s enough to pay the average of $1,200 that these households pay in monthly rent, which works out to just 17 percent of their average income, says Willett. Apartment market research firm MPF has a few caveats: rents are higher compared to incomes in West Coast markets and for younger people.

“But that’s been true for young adults in every generation historically,” says Willett. “The big-picture story is that affordability isn’t especially challenging for most market-rate apartment renters.”

Most of these renters seem willing to accept rising rents. The average lease renewal rates are now relatively high compared to years past, according to researchers including MPF. “Rents will continue to grow faster than wages and inflation,” says Douglas Robinson, spokesperson for NeighborWorks, an organization that supports affordable housing. “Bottom line is people need to live somewhere, so they will pay the higher rent and make it work in terms of budget.”
Where are low-income people living?
MPF’s data may show that the nation’s problem with unaffordable housing is worse than many thought. About 30 percent of U.S. households earn $30,000 or less a year (once again, that’s household income, not individual income). That’s not enough money to afford the rent on an average market-rate apartment almost anywhere across the country.
“A significant chunk of the very low-income households likely live in rental single-family home product,” says Willett. Roughly half of the nation’s rental housing is located in single-family homes.
This may present extra challenges for low-income people, since these single-family homes may be more likely than apartments to be located far from jobs or infrastructure like light rail stations and bus stops. In the past, when many low-income people were crowded into inner-city neighborhoods, they were more likely to be near employment opportunities, mass transit options and social services.
“Transit costs can surprise a person who lives in the suburbs and commutes into a job center,” says Robinson.
Demand is also high for government-subsidized “affordable” apartments with restricted rents, though the number of these apartments is much smaller than the number of low-income families, according to numerous experts.
Apartment rents rise higher and higher
Rents for market-rate apartments are expected to keep growing quickly. “Reis is expecting to see rent growth accelerate in 2015,” says Michael Steinberg, analyst for economics and research at research firm Reis, Inc.
Effective rents will likely increase by 3.8 percent in 2015, according to Reis. That’s roughly twice the rate of inflation. It’s also faster than the 3.5 percent rent growth in 2014 and 3.2 percent rent growth in 2013.
Rents will grow quickly, even though developers plan to finish hundreds of thousands of new apartments by the end of the year. These new apartments will cause the vacancy rate to increase slightly, to reach 4.6 percent by the end of the year. That’s the wrong direction for vacancies to go, but the vacancy rate is currently so low that a slight increase won’t change the dynamic by much.
“There is some concern about the direction of fundamentals, but we are coming from a very strong performance,” says Reis’ Steinberg. “Even with the amount of new supply, vacancy rates are still pretty low. 

Categories: Bad Credit, Bad Credit Housing Locator Service, Housing Problems, Identity Theft, Mortgage Problems

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.


Reply hermes belts
7:02 PM on January 6, 2022 
Thank you for each of your hard work on this web site. My mum takes pleasure in carrying out investigation and it's easy to see why. Most people notice all regarding the dynamic means you give both useful and interesting tactics via your web site and in addition invigorate response from others on the article then our child is really being taught a lot. Enjoy the remaining portion of the year. You're the one carrying out a really good job.
hermes belts
Reply air jordan
7:04 PM on January 6, 2022 
I'm just commenting to let you understand what a wonderful experience our girl gained studying the blog. She discovered numerous pieces, which include how it is like to have an amazing giving mood to get many more without difficulty know specific complicated subject matter. You truly exceeded our expected results. Many thanks for displaying such precious, dependable, revealing and also fun tips on the topic to Gloria.
air jordan
Reply steph curry shoes
7:04 PM on January 6, 2022 
I really wanted to write down a remark so as to express gratitude to you for those lovely items you are giving on this website. My incredibly long internet lookup has at the end been honored with extremely good points to go over with my family members. I would declare that most of us readers are truly endowed to be in a great site with many marvellous professionals with beneficial plans. I feel somewhat grateful to have come across your entire weblog and look forward to so many more thrilling times reading here. Thanks a lot again for everything.
steph curry shoes
Reply jordan 13
11:47 PM on January 7, 2022 
I must express some appreciation to you just for rescuing me from this particular crisis. Right after scouting throughout the world wide web and coming across tips which were not powerful, I assumed my entire life was over. Living without the presence of solutions to the difficulties you have solved by means of this write-up is a crucial case, and those that could have in a negative way affected my entire career if I hadn't encountered your blog post. Your own capability and kindness in taking care of the whole lot was important. I'm not sure what I would've done if I hadn't encountered such a subject like this. I can also at this time look ahead to my future. Thanks for your time very much for your impressive and result oriented help. I won't hesitate to suggest your site to anybody who needs recommendations about this subject.
jordan 13
Reply alexander mcqueen
10:42 PM on January 8, 2022 
Thanks so much for giving everyone a very memorable chance to read articles and blog posts from this website. It's usually very nice and stuffed with amusement for me personally and my office mates to search your website minimum 3 times in 7 days to study the new stuff you have got. Not to mention, I am also certainly amazed with all the astounding guidelines served by you. Selected 3 points in this article are ultimately the most effective we've had.
alexander mcqueen
Reply jordan shoes
10:43 PM on January 8, 2022 
My wife and i have been thrilled that Albert managed to conclude his investigations while using the precious recommendations he had through the web site. It is now and again perplexing to just always be giving out helpful hints that the others have been making money from. So we acknowledge we have you to be grateful to for this. The entire illustrations you made, the simple website menu, the relationships you aid to create - it's many wonderful, and it is aiding our son in addition to the family consider that the concept is excellent, which is very mandatory. Many thanks for the whole lot!
jordan shoes
Reply moncler jackets
10:44 PM on January 8, 2022 
I would like to show some appreciation to the writer for rescuing me from such a challenge. Just after looking out through the online world and seeing principles that were not helpful, I assumed my entire life was done. Being alive minus the answers to the difficulties you've solved all through your post is a crucial case, as well as ones which could have in a negative way affected my entire career if I had not encountered your web site. The mastery and kindness in maneuvering all the stuff was precious. I'm not sure what I would've done if I had not encountered such a subject like this. It's possible to at this moment look ahead to my future. Thanks very much for your specialized and result oriented help. I will not be reluctant to propose your web page to any person who desires recommendations about this area.
moncler jackets
Reply jordan shoes
10:46 PM on January 8, 2022 
Needed to compose you one little bit of observation so as to give thanks the moment again on your awesome concepts you have featured above. This has been so surprisingly open-handed with people like you to provide easily all a number of us would have made available for an ebook to make some bucks for themselves, most importantly considering that you might have done it in case you considered necessary. These inspiring ideas likewise served like the great way to know that the rest have the same fervor just as my own to know the truth great deal more around this issue. I think there are many more enjoyable sessions in the future for those who read carefully your blog post.
jordan shoes
Reply jordan shoes
5:20 AM on January 10, 2022 
I actually wanted to post a simple comment to express gratitude to you for the wonderful tips and hints you are sharing at this site. My long internet research has at the end been recognized with good quality ideas to talk about with my co-workers. I 'd declare that many of us site visitors actually are extremely endowed to exist in a magnificent site with very many brilliant professionals with helpful tactics. I feel quite happy to have discovered your weblog and look forward to so many more exciting times reading here. Thank you once again for a lot of things.
jordan shoes
Reply chrome hearts
5:20 AM on January 10, 2022 
My wife and i were absolutely joyful when Ervin could deal with his homework using the precious recommendations he gained while using the blog. It's not at all simplistic to just find yourself giving away solutions that many people might have been making money from. We realize we have got the website owner to appreciate for that. All of the illustrations you've made, the straightforward website navigation, the friendships your site aid to engender - it is all astounding, and it's really leading our son in addition to us believe that this issue is fun, which is especially vital. Many thanks for all!
chrome hearts
Reply yeezy
5:21 AM on January 10, 2022 
I have to show my love for your kind-heartedness supporting women who require help on this important concept. Your very own dedication to passing the solution around has been especially effective and has surely encouraged women much like me to realize their targets. Your personal insightful information indicates much to me and especially to my peers. Thank you; from each one of us.
Reply kd shoes
5:22 AM on January 10, 2022 
My wife and i got now lucky Emmanuel could carry out his analysis by way of the ideas he had from your very own web page. It is now and again perplexing to simply choose to be making a gift of helpful tips that many men and women might have been trying to sell. Therefore we already know we've got the writer to appreciate for that. The type of illustrations you have made, the straightforward website menu, the relationships you help to instill - it is all terrific, and it's really aiding our son and us recognize that that concept is enjoyable, which is quite important. Thank you for all!
kd shoes
Reply off white shoes
5:23 AM on January 10, 2022 
My husband and i felt so happy when Albert managed to deal with his preliminary research via the precious recommendations he had from your web site. It's not at all simplistic to simply happen to be handing out helpful tips which many others have been selling. And now we remember we now have you to give thanks to for that. The entire illustrations you've made, the easy website menu, the friendships you help to engender - it's got most great, and it is leading our son and the family reason why this topic is cool, which is certainly wonderfully important. Many thanks for the whole lot!
off white shoes
Reply golden goose sneakers
5:24 AM on January 10, 2022 
I am glad for commenting to make you understand of the magnificent experience my wife's daughter enjoyed checking yuor web blog. She learned a good number of pieces, with the inclusion of what it's like to have a very effective teaching mood to make other folks smoothly know precisely several impossible issues. You truly did more than visitors' expected results. Many thanks for showing the warm and friendly, healthy, revealing and fun tips on your topic to Janet.
golden goose sneakers
Reply golden goose outlet
1:48 PM on January 10, 2022 
Thank you for your own hard work on this web page. Ellie takes pleasure in doing research and it's obvious why. I notice all of the dynamic way you render very helpful tricks through this website and even attract contribution from some other people on that topic then our favorite princess is without a doubt studying a great deal. Take advantage of the remaining portion of the year. You're conducting a powerful job.
golden goose outlet
Reply yeezy boost 350 v2
1:50 PM on January 10, 2022 
I'm also commenting to let you understand what a really good discovery my princess found reading your site. She learned lots of pieces, not to mention what it's like to have a marvelous giving character to have a number of people with ease fully grasp a number of complex matters. You undoubtedly surpassed readers' expected results. Thanks for imparting these beneficial, trustworthy, edifying not to mention unique thoughts on this topic to Ethel.
yeezy boost 350 v2
Reply lebron 18
1:51 PM on January 10, 2022 
I enjoy you because of all of your effort on this blog. Betty take interest in doing investigation and it is obvious why. A number of us hear all about the lively method you render efficient steps via this blog and as well welcome contribution from people about this situation while our own child has been discovering a lot of things. Take pleasure in the rest of the year. You are always doing a superb job.
lebron 18
Reply pg 1
1:51 PM on January 10, 2022 
I intended to draft you the tiny note so as to give many thanks again on your breathtaking guidelines you have shown here. This has been so unbelievably open-handed with people like you to provide publicly what exactly a number of people could have distributed for an ebook to help make some profit for themselves, mostly given that you might well have done it in the event you wanted. These ideas also worked to be the fantastic way to be sure that other people online have the identical eagerness the same as my own to figure out great deal more in terms of this matter. Certainly there are lots of more pleasant opportunities ahead for individuals that find out your blog post.
pg 1
Reply air jordan
7:26 PM on January 11, 2022 
I wanted to send you the little bit of note to finally thank you the moment again regarding the marvelous tactics you've shown on this website. It's really generous with you to grant unhampered what exactly numerous people could possibly have sold for an e book to help make some profit for their own end, certainly considering that you might have done it if you ever wanted. The suggestions likewise acted to become good way to realize that other people online have a similar passion just as my personal own to know somewhat more on the topic of this problem. I think there are several more pleasurable situations in the future for individuals that view your site.
air jordan
Reply bape
7:26 PM on January 11, 2022 
I precisely had to thank you very much all over again. I am not sure the things that I would have made to happen without the type of aspects discussed by you about such subject. It was before a real distressing crisis in my position, nevertheless taking note of a new skilled manner you solved the issue made me to cry over gladness. I am just thankful for this help and even hope that you find out what a great job you happen to be providing teaching most people by way of your blog. Probably you've never come across any of us.