In a recent study conducted by Harvard, it was discovered that around 22 million households in the U.S. are currently spending more on rent than they can afford.
Inside Harvard (Photo: NBC News)
A Harvard Report On Renters And Their Spending On Rent
According to a report from Harvard’s Joint Center for Housing Studies published last Wednesday, the number of renters who spend more than the suggested 30% of their income on their housing payments is now skyrocketing as the affordability of housing is declining in the country. As stated in the report, around 21.6 million low-income renters increased by 1.2 million as the pandemic hit, these numbers are believed to be the highest since 2001. Renter households amounting to 49% were declared as cost-burdened last 2021, which is near compared to the Great Recession era in 2011 which amounts to 51%.
The spike in the number of these households to be considered now as cost-burdened during the pandemic was that these households were already spending more than they can afford on rent. Harvard stated in their report that cost-burdened households could struggle to pay for basic necessities given that inflation continues to rise. The report also indicates that Black and Hispanic renters are heavily affected.
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Spending too much in paying the rent could be dangerous since low-income individuals or families might not have any money for emergencies and similar occasions where they might need money. The report added that the country is still struggling to address the housing crisis.
The shortage of housing units and housing programs for those in need is addressing the crisis but still, the problem continues to persist. Homelessness is still on the rise, especially with pandemic benefits beginning to end. Solutions from the government and local authorities are showing promising results, but more resources are needed to make them work.
