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I thought the chart that showed rental affordability vs. income was interesting; in short, the share of severely burdened renters is going up, and the median renter income is going down.
Solution? Build more apartments downtown which, as the article points out, doesn't actually serve lower income populations, despite the city urban renewal agency throwing money at the projects to encourage doing so.
I think we're honestly at the point right now where it's cheaper to BUY a home in the Treasure Valley than it is to RENT one.
It is cheaper to buy than to rent, if you ignore opportunity cost of the down payment. My mortgage is $750 (from 12 years ago, but because of the recession, values are about the same today). HOA and maintenance are another $50ish per month. Similar houses in my neighborhood now rent for around $1000 per month.
The article had several things that irritated me, though.
First off, one of the people they used for an example was given a years notice to find replacement housing. If he even attempted to look during that year, the article didn't mention it. They gave him another year's extension, and he waited until the last minute to start looking. Then when he finally did look, he found several possibilities. And the market is tighter now than it has been over the last 2 years. So if he had looked when he was first given notice, he would have had even more options available than today. So that was a terrible example to use for the article.
Also, the article says that the primary reason more low income housing is needed is because we have low wages. That isn't my experience at all. We have two 2 bedroom rentals advertised right now that are under $800. EVERY application we have received has been for a non-English speaking, refugee, huge family, who has no income at all, with terrible credit, and is on Section 8. On a 2 bedroom, we allow up to 5 occupants (people and pets both count). Every applicant has had more than 5 occupants, so they've all been turned down. I haven't had a single application on either one from someone who works at a low wage job, pays their bills and just can't afford more rent. This is an experience that has been repeated every time we have a low price rental available. So I can't agree that the primary driver is the fact that we have low wages.
Also, in the table, you can see that median renter income is up since 2011, and percentage of burdened renters is down since 2011. They are worse if you compare to 2008 (the height of the recession), but better compared to 3 years ago. Also, the median presumably dropped at least partly because those with higher incomes bought houses, and exited the rental market.
Finally, I will say that rents have been almost totally stagnant, and even down slightly, for the last 10 years until this year. Taxes and insurance have increased almost across the board over that time, but until this year, the rental market did not support higher rents. So they were due for an increase.
It is cheaper to buy than to rent, if you ignore opportunity cost of the down payment. My mortgage is $750 (from 12 years ago, but because of the recession, values are about the same today). HOA and maintenance are another $50ish per month. Similar houses in my neighborhood now rent for around $1000 per month.
The article had several things that irritated me, though.
First off, one of the people they used for an example was given a years notice to find replacement housing. If he even attempted to look during that year, the article didn't mention it. They gave him another year's extension, and he waited until the last minute to start looking. Then when he finally did look, he found several possibilities. And the market is tighter now than it has been over the last 2 years. So if he had looked when he was first given notice, he would have had even more options available than today. So that was a terrible example to use for the article.
Also, the article says that the primary reason more low income housing is needed is because we have low wages. That isn't my experience at all. We have two 2 bedroom rentals advertised right now that are under $800. EVERY application we have received has been for a non-English speaking, refugee, huge family, who has no income at all, with terrible credit, and is on Section 8. On a 2 bedroom, we allow up to 5 occupants (people and pets both count). Every applicant has had more than 5 occupants, so they've all been turned down. I haven't had a single application on either one from someone who works at a low wage job, pays their bills and just can't afford more rent. This is an experience that has been repeated every time we have a low price rental available. So I can't agree that the primary driver is the fact that we have low wages.
Also, in the table, you can see that median renter income is up since 2011, and percentage of burdened renters is down since 2011. They are worse if you compare to 2008 (the height of the recession), but better compared to 3 years ago. Also, the median presumably dropped at least partly because those with higher incomes bought houses, and exited the rental market.
Finally, I will say that rents have been almost totally stagnant, and even down slightly, for the last 10 years until this year. Taxes and insurance have increased almost across the board over that time, but until this year, the rental market did not support higher rents. So they were due for an increase.
"EVERY application we have received has been for a non-English speaking, refugee, huge family, who has no income at all, with terrible credit, and is on Section 8. On a 2 bedroom, we allow up to 5 occupants (people and pets both count). Every applicant has had more than 5 occupants, so they've all been turned down. "
A major concern for any State/City.
How do all these people manage? Who pays for the subsidies? How long do these subsidies last?
I am all for helping others, but ONLY if it means a hand up that is predicated on time limits and achieved goals so that we don't end up enabling vs. helping.
We do a lot of harm to those we attempt to help, and ourselves, when we enable. :-(
"EVERY application we have received has been for a non-English speaking, refugee, huge family, who has no income at all, with terrible credit, and is on Section 8. On a 2 bedroom, we allow up to 5 occupants (people and pets both count). Every applicant has had more than 5 occupants, so they've all been turned down. "
A major concern for any State/City.
How do all these people manage? Who pays for the subsidies? How long do these subsidies last?
I am all for helping others, but ONLY if it means a hand up that is predicated on time limits and achieved goals so that we don't end up enabling vs. helping.
We do a lot of harm to those we attempt to help, and ourselves, when we enable. :-(
I agree! I've known people that know how to "work the system" and get away with this for years. Makes me very angry!
But that is part of the topic, as referenced in Lacerta's post, isn't it?
Rental affordability is impacted by many things, a big factor being subsidized/low income rent, whether that involves refugees or not is moot.
I don't know if this is experienced here, but often landlords with multiple properties will charge more to renters who don't qualify for Section 8, etc. to offset the increased property costs they often experience in their Section 8 properties.
The point is, it's not solely a refugee issue and/or Section 8 issue. I know so many younger kids and families struggling to make rent here. Partially because of how tight the rental market is, partially because they might not have the credit, the larger first/last down paymetnts, etc. It's more important information, one way or another, for prospective renters to the areas, rather than a commentary on refugees and/or affordable housing.
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