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Too Damn High! Rent Rising Faster Than Wages

Too Damn High! Rent Rising Faster Than Wages

"A total of 21.3 million are spending 30 percent or more of their paycheck to cover the rent — also a record high," said CNN in a recent article.

As rent prices skyrocket in high-cost-of-living cities, like San Francisco, Chicago and New York City, even supposed low-income-requirement cities like Detroit are seeing a rise in occupancy levels, which in turn leads to higher rent prices.

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According to CNN's Kathryn Vasel, "In the 10 cities with the highest housing costs, renters with middle-class incomes are having a particularly hard time making ends meet. Nearly 75 percent of renters earning $30,000–$4,999 and 50 percent of those making $45,000–$75,000 living in these to markets are considered ‘cost-burdened’ – meaning they spend at least 30 percent of their income on rent."

Development options are changing too. Take the emerging stadium-district in Detroit, for instance. Fifty-six (56) loft units, 16 townhouses, 64 one-bedroom units — to name just a few apartment types — are being built in a $650-million-dollar private invested venture. Options like this are a draw to middle-aged people who are starting to opt for a rent payment over a mortgage. Forty (40) percent of renters fall within the 30–49 demographic.

As rent payments rise, younger people and low-income residents are being pushed to the side. Placed against the cost of a 15-year fixed mortgage, the real estate market may be in for a shakeup.


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