It’s fast becoming more favorable to buy than rent. According to recent research out of Harvard University’s Joint Center for Housing Studies, along with Enterprise Community Partners, Inc., the number of households spending more than 50 percent of their income on rent is expected to rise more than 10 percent by 2025. The largest increases are expected among older adults, Hispanics and single-person households.
“Our analysis shows that even in the unlikely event that income growth greatly outpaces rent gains, the number of severely cost-burdened renters will remain near current record levels,” says Christopher Herbert, managing director of Harvard’s Joint Center for Housing Studies.
The research projects the number of severely burdened households aged 65 to 74 and those aged 75 and older will swell to 1.2 million, a 42.1 percent increase. The number of Hispanic households with severe renter burdens will rise to 3.4 million, a 27.3 percent increase. The number of severely burdened single-person households will jump to 5.7 million, a 12.0 percent increase.
The research calls for action on the dwindling supply of affordable housing, urging policymakers to consider enhanced levels of support for rental housing across a range of income levels.
Source: Harvard University Joint Center for Housing Studies
Published with permission from RISMedia.