Renters Struggling More Than House Owners In The US

The housing crisis in America has become a problem for homeowners. However, renters also feel the brunt of rising house costs. Harvard University’s Joint Center for Housing Studies released a report last week showing that both house owners and renters have been facing the brunt of high housing costs. The report also mentioned that one out of every 4 house owners “are now stretched worryingly thin”, and the situation is even worse for renters. 

The number of renters who spend more than half of their income on rent and other housing needs increased significantly in 2022 to a whopping 12.1 million, up by 1.5 million from before the COVID-19 pandemic. This leaves them vulnerable to becoming unhoused in the case of any unexpected bill like a medical bill, as they are spending most of their income on rent and other housing needs. 

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The report by Harvard also mentioned, “For renters, the landscape is even more challenging. While rents have been rising faster than incomes for decades, the pandemic-era rent surge produced an unprecedented affordability crisis.

The director of White House’s National Economic Crisis, Laen Brainard, cited these issues on Thursday. She said, “Housing costs are a particular pain point for American households. “Congress really does need to act here. The Senate could act tomorrow, and we would have tax credits for 200,000 additional affordable units.

Now, the Biden administration has said that they will introduce a cap on annual rental increases, which will help keep the rent down and aid low-income housing. Brainard also mentioned, “Already, nearly 700,000 homeowners are saving roughly $900 annually as a result of the Administration’s reduction in mortgage interest premiums for FHA-backed loans.

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