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How Much Rent Is Too Much?





The housing market correction or foreclosure crisis has turned millions of former homeowners into renters. 

Followed by years of economic uncertainty, which has kept potential buyers from leaving their rentals and making the move into homeownership, the demand for rental housing and has helped push rents up more than 21 percent since the housing market peaked in 2006.

According to a recent study by RealtyTrac, one out of three Americans now live in rentals were the monthly rent consumes more than 30 percent their monthly income which is the traditional measure of affordability.  The study also says, many are paying out a much larger percentage of their pay.

During this time renters have been getting squeezed on income after inflation, which has fallen 14 percent over the past six years.  The study found that nearly 25 percent of renters were paying more than 50 percent of their income in rent, forcing some to make significant reduction in spending on food, health care and retirement.

I don't have specific numbers to compare these national studies with our Sacramento area but we do know the level of foreclosures and short sales were high for our area and the demand for rental property has increased.  Because our housing has, typically, been more affordable than other urban areas I suspect the number of renters paying over the 30 percent threshold is lower than the national average but still an issue here.

Unaffordable housing or being "house poor" restricts us.  When too much of a paycheck is devoted to housing it can reduce or eliminate opportunities including spending money to go back to school or saving for a down payment on a home.

If you have any questions or comments about today's column, I would love to hear from you.  I can be reached at the MagnumOne Realty office in Roseville (916-899-6571) or by sending an email to juliej@jalone.com.

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Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.

Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento



Placer County News Headlines

$96,000 Raised for Fallen Officers with Help of Dutch Bros.On Wednesday, October 29, Dutch Bros. Coffee owners in the Sacramento area banded together with the community to raise $96,697 to support the families of Sacramento Sheriff Deputy Danny Oliver and Placer County Sheriff's Detective Michael David Davis Jr.

Roseville Police Seek Suspect in Halloween Crime61-year-old Daniel Rosario is being sought by Roseville police in connection with an early-morning burglary, car theft and attempted assault on an officer

Roseville, Rocklin Among Top Choices for Young FamiliesRoseville and Rocklin are ranked among the top 10 places in Northern California for young families according to a NerdWallet report

Kings, Sacramento Community Break Ground on Arena Marking the culmination of a decade-long effort to build a new arena in Sacramento, today the community officially celebrated the groundbreaking of the new downtown Entertainment and Sports Center (ESC).

Roseville Hit and Run Reward OfferedRoseville Crime Stoppers is offering a $500 reward for information leading to the arrest of a wrong-way driver who crashed into another car and then fled the scene

Free Alzheimer's Caregivers Workshop at UC DavisOnline registration begins Nov. 4 for the UC Davis Mini Medical School, a series of Saturday classes ideally geared for foresighted middle-agers and novice seniors

Roseville California Crime Brief (10.29.14) Crime brief update report for Roseville, California October 29, 2014.

Halloween Safety TipsCostumes, jack-'o-lanterns, haunted house and scary ghost stories mark this time of year as all kids of all ages enjoy the spirit of Halloween

Memorial for Slain Officer to be Held in RosevilleThe memorial service for Detective Michael Davis, who was killed in the line of duty will be held Tuesday, November 4, 2014, at 10:00 a.m. at Adventure Christian Church

2,400 Volunteers Turn Out in Rocklin for Annual EventMore than 2,400 volunteers packed 520,992 meals for malnourished children around the world at a three-day event at William Jessup University in Rocklin.

Sinking Gas Prices Won't Last The U.S. average price of gasoline ($3.03/gal) continues its slide to levels last seen in December 2010... and today, more than one-half of the nation's gas stations offer regular

Dutch Bros. to Raise Funds for Fallen Officers' Families Dutch Bros. Coffee owners in the Sacramento area are raising funds to support the families of Sacramento Sheriff Deputy Danny Oliver and Placer County Sheriff's Detective Michael David Davis Jr.


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