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In many parts of the country, the difference between rental costs and household income is making rent affordability unsustainable.
Many people are being forced to move to more metro areas due to the increasing different between rental costs and household incomes. According to the National Association of REALTORS®, the average rent rose 15 percent and income only grew by 11 percent over the past year.
The NAR also says that the amount of households that are being rented is increasing and homeownership is decreasing. As renters start looking to buy, they face the same issues as with renting. Home prices are increasing at a higher rate than salaries. The NAR claims that one way to relieve housing costs is to increase new home construction, especially entry-level homes. The problem is getting builders to agree to that because of rising construction costs and concerns about the re-emergence of younger buyers.