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Rent in the American Economy

 
 
gollum
 
Reply Sat 28 Oct, 2017 03:12 pm
Has rent as a percent of the American economy been increasing over time?
 
Sturgis
 
  3  
Reply Sat 28 Oct, 2017 03:56 pm
@gollum,
In a manner of speaking.

Rental amounts have steadily increased over the years, going from approximately 17% average in 1950 to absurd levels today where it can often be more than 50% of a person's income.

Since rents have risen, the landlords are having a higher receipt. This does not however mean they are better off in all cases. Their costs have risen as well. Higher fuel, water and electric costs as well as higher taxes and repair prices.

Those paying rent have a smaller percentage of disposable income, therefore they are less able to contribute as much to the stores and other sellers (cars, vacations, etc etc).

It would be more accurate to say that rent percentage in the American economy has changed over time.
ossobucotemp
 
  1  
Reply Sat 28 Oct, 2017 04:20 pm
@Sturgis,
I don't know about rents right now, but once upon a time, my rent wasn't raised for six years.. not re the economy so much, as for my steadiness in a university neighborhood that people sometimes were raucous in, or destructive in some way, or didn't last long re grades or whatever. I figure past tenants were more annoying than I was. I was past all that, plus painting the kitchen with permission, not messing up the place. I did throw a very large party once, but I warned the landlords while inviting them way ahead of time. I suspect they took a weekend trip or watched from afar. No harm done.

I miss that place. Last I saw of it, driving by one day years after, the building (a charming spanish abode, just two 'apartments', the owners below and me above) was gone and there was a monster three story ugly expansive apartment building.
0 Replies
 
cicerone imposter
 
  1  
Reply Sat 28 Oct, 2017 05:49 pm
@Sturgis,
Also, location makes a big difference. Here's a chart which shows how much a person needs to earn in order to rent an average apartment or home in each state. Even then, there are big differences between cities.
https://www.huffingtonpost.com/entry/how-much-income-you-need-to-afford-rent-by-state_us_574880cae4b0dacf7ad4c828

Since we bought our home long before the current housing crisis, we have no mortgage or rent payment in the Heart of Silicon Valley where rents are one of the highest in the country. https://www.apartmentguide.com/apartments/California/Sunnyvale/3-beds-1z141xs/
0 Replies
 
gollum
 
  1  
Reply Sat 28 Oct, 2017 06:20 pm
@Sturgis,
Sturgis-

Thank you.
Where did you find the 17% and 50% numbers? Or to express the question differently, where does one look to find rent levels?
cicerone imposter
 
  1  
Reply Sat 28 Oct, 2017 06:25 pm
@gollum,
Rent as a percentage of income varies too much from location to location, and what other fixed expenses the family has. Age and size of family are variables that cannot be considered in any average. Student loans impact many young families.

https://m.huffpost.com/us/entry/us_5706d315e4b0a506064eb434
0 Replies
 
 

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