yellow pages news jobs events calendar movie times RSS News Feeds
Rocklin and Roseville Today Local Events
   |   Current Temp: 89.0 F (31.7 C)

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.

Print

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

Placer County Republican Party To Hold 2014 ConventionLOOMIS - The Placer County Republican Party will hold its endorsement convention on Aug. 23 to select which candidates to support for local offices in Placer County.

Job Fair in Roseville August 22ndRoseville, CA -- Multiple community agencies including Brandman University, The City of Roseville Libraries, Placer, Sacramento and El Dorado Counties, Golden Sierra Job Training, and Sacramento Works

Roseville Crime Report Digest Update (7.23.14)The Roseville Police Department weekly crime report digest update for July 23, 2014.

California Limits Full Contact Football for StudentsGovernor Jerry Brown signed into law AB2127 which limits, but does not eliminate full contact football practices for middle and high school students.

Beware of Deceptive Home Improvement OffersThe California Contractors State License Board (CSLB) is urging consumers to be aware of home improvement offers by individuals who use unethical business practices to gain entry into their homes

Continuous Improvement Network: August 6th & 20thSierra College CACT provides Value Stream Mapping Training in Sacramento on August 6 & 20 for the Continuous Improvement Network

Alternative Transportation Programs in Placer CountyPlacer County Transportation Planning Agency (PCTPA) is your resource for information about alternative transportation services in Placer County.

Auburn Woman Attacked Inside HomePlacer County sheriff's detectives are looking for a man who attacked a woman at her north Auburn home early this morning.

Western Nationals Softball Tournament in Roseville and LincolnASA Softball is bringing the Western Nationals for the Girls B 10U & 12U divisions to the Placer Valley Area. The event is six days long, taking place from July 28-August 3.

Tahoe Public Projects Garner AttentionTahoe Transportation District has been recognized nationally and by the state of Nevada for its positive impacts, collaborative initiatives, environmental enhancement, and service to the community's

Rocklin National Night Out Events August 5thEach community member is invited to join their neighborhood watch group and the Rocklin Police Department for National Night Out on Tuesday, August 5, 2014.

Recovery Plan for California Salmon and SteelheadNOAA Fisheries and the California Department of Fish and Wildlife (CDFW) jointly released two plans to restore populations of salmon and steelhead in California's Central Valley


more news