“The average renter now spends 30% of their income on rent, up from a longtime average of about 25%, according to Zillow.”
Over the past year, average salaries have increased 1.8 percent. At the same time, the average rental cost for apartments, houses, condos, and other housing has risen 7 percent.
The Neighborhood Law Clinic at the University of Wisconsin Law School estimates that several million families a year face evictions nationwide. In fact, for many tenants, an unexpected emergency or unexpected expense can lead to eviction. Most often, evicted tenants face a very difficult time finding a new home that is often in a different neighborhood or a home that is not as nice as their last home.
While the major reason for a tenant’s eviction is not paying the rent, some landlords will look for minor violations like loud noise or having a pet when there is a no pet policy to evict tenants. Then, landlords will rent to a new tenant that is willing (and able) to pay higher rent. In some cases, the owner of the rental property will sell the property or convert the property to condos.
For more information go to http://money.cnn.com/2014/10/29/real_estate/evicted/index.html
You may want to use the information in this blog post and the original article to
- Discuss the importance of choosing a housing option that you can afford.
- Stress the importance of budgeting for housing and other major expenses and establishing an emergency fund.
- While most everyone wants a nice, safe place to call home. What factors affect your choice when choosing an apartment, condo, or house to rent or buy?
- Does the fact that the average tenant spends 25 to 30 percent of their income on rent and that there are no tax advantages or equity buildup when you rent, encourage you to purchase your own home? Justify your decision to rent or buy.