According to Census data collected from 1960 through 2014, the belief that millennials are paying more for rent rings true. Apparently, inflation-adjusted rents have been steadily increasing. Experts say they are now as much as 64 percent higher than they were 50 years ago.
At the same time, household incomes have also been going up, but at a much slower rate. In fact, research suggests that people are only making about 18 percent more than Gen Xers and Baby Boomers were.
Cost-burdened renters, which is defined as a person who is paying more than 30 percent of their earnings on rent alone, grew exponentially. Over the past 50 years, the percentage of cost-burdened renters went from 24 percent to 50 percent. Currently, more than 11 million people pay 50 percent or more of their monthly income towards rent.
Another report says that median rent amounts have also increased by 63 percent since 1960. It has gone from $568 in 1960 to $934 in 2014, and it’s still rising. So long as rent rates continue to outpace household income amounts, millennials will continue to find it more difficult than their predecessors to find a home.
Remember, these numbers are inflation-adjusted, meaning that most of the increases have nothing to do with inflation. Experts argue that if the cost of rent had only increased with inflation, everyone would be paying as much as $350 less each month for rent.
In addition, the amount of people who are renting as opposed to owning their homes is significantly larger than it has ever been. More and more people are finding it nearly impossible to buy a home. How long until it is nearly impossible to rent one? What will happen then?
The high cost of living for millennials these days drives thousands to file bankruptcy every year. The higher rent amounts go, the more people will be forced to file for bankruptcy protection. Bankruptcy offers a solution for thousands of people who can no longer afford to keep paying their mortgage or rent. The popular saying, “the rent is too damn high,” continues to be true, and will be for some time.
The Manalapan bankruptcy attorneys at Garland & Mason LLC understand the struggles of being overburdened with debt. Talk with a bankruptcy lawyer to find out what solutions may be available to you.