Fewer people owning homes means more renters in the market. And when there are more renters in the market, the rental prices are driven higher. That’s exactly what’s happening in the marketplace right now. And that is leading to more and more people who are having trouble affording their rent.
Rental prices rose an average of 3.2 percent last year. That’s more than twice the rate of inflation, and more than the low increase in wages we’ve seen. So a greater percentage of people across the income spectrum are spending more than 30% of their incomes on rent. That leaves less money for other expenses, not to mention money left over for saving and investing. For the full story, click here.