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 email@example.com.
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 HeadlinesPolice Officer Killed: Gunned Down in Arden Way LotDeputy Danny Oliver, 47 a Sacramento County Sheriff's Deputy was killed in the line of duty while investigating a suspicious occupied vehicle within a business parking
California Housing Market: 2015 ForecastRealtor, Julie Jalone of MagnumOne Realty in Roseville, writes about the recent housing forecast or 2015 released by the California Association or Realtors and where the market is currently.
3 Killed, Alcohol Suspected in Deadly Sacramento CrashOn October 23, 2014 at approximately 2:24 p.m., an unknown male driver was driving a 2008 Chevrolet Tahoe on Howe Ave north of Burney Way at an unknown speed.
Nissan Rogue Features Many Enviable ChangesIn effort to attract more male buyers, Nissan reportedly decided to alter the exterior look of the Rogue in its 2014 redesign. Not a bad move. Most men don't
New Nursing Village Ribbon Cutting in RocklinRocklin, CA- Sierra College welcomed their long-running Nursing Program back to the Rocklin campus with a recent Ribbon Cutting ceremony.
Placer County Woman Dies: West Nile Virus ConfirmedPlacer County health officials are able to confirm that an Ophir woman, who passed away earlier this month, did indeed have West Nile Virus (WNV).
3 Teens Arrested in Burglary and Vandalism of Country ClubA Placer County Sheriff's detective apprehended three juveniles Thursday in connection with recent burglaries and acts of vandalism at the Auburn Valley Country Club.
Roseville Author Releases New Book NationwideROSEVILLE, Calif. - The new book "Resonance," a stimulating new book by Roseville author Emily Elaine is now available nationwide.
Genderally Speaking LGBTQ Exhibition in RocklinRocklin, CA--The Ridley Gallery presents "Genderally Speaking", photography by Ron Williams in conjunction with Sierra College Pride Days (November 4-6).
Rocklin History Series Presents Julia Morgan's GoldThe Rocklin History Series continues on November 16, 2014 with a live presentation by Julia Morgan Historian Karen McNeill Ph.D. at 2 pm at the beautiful Old Saint Mary's Chapel
Free Identity Theft Prevention Class in AuburnThe Placer County Sheriff's Office is offering a free identity theft prevention class on Monday, October 27, from 6 to 8 p.m. at the Auburn Justice Center.
Loomis Students to Learn About Pediatric Iron Lung for World Polio DayIn recognition of World Polio Day, Rotary Club of Sunset Loomis will bring a pediatric iron lung to Loomis Grammar School and Loomis Basin Charter School