Experts say half of all renters now pay at least 30% of monthly income on rent
LYNCHBURG, Va. (WFXR) — People nationwide continue to see high prices in what feels like every aspect of their lives and housing is no different. Experts say half of all renters are now paying at least 30% of their monthly income on rent alone.
Dean of the Business School at the University of Lynchburg, Nancy Hubbard, says a lot of it comes down to the fact that there just aren’t enough rental properties available right now.
“The ability to find rental properties is really difficult, there’s just a shortage on the market and that means that rent prices have gone up dramatically,” said Hubbard.
Because of this, people are shelling out sometimes their entire paycheck just to pay rent.
Home sales are down, but could spike in the Spring
“If someone is severely rent burdened, they’re paying over half of their monthly wages to pay for the rent,” said Hubbard.
This can often force people to make financial sacrifices on necessities like food, insurance, and gas.
Gabriel Kohnen from Cornerstone Property Management in Roanoke says the two main reasons companies may be hesitant to build new rental properties are insurance and property tax increases.
“We’ve seen an increase anywhere between 7% and almost 20% in the property taxes just this last year,” said Kohnen.
Bill to legalize medically assisted death for terminal patients narrowly advances in Virginia Senate
He adds that insurance rates to develop new properties have gone up nearly 40%.
In short, if it costs a lot to build a new property, like it does now, renters will likely see that reflected in their rent cost.
“In order to make those numbers make sense, they’re increasing those prices,” said Kohnen.
However, some good news, both Hubbard and Kohnen say they do believe this will level out in the future, it just may take some time.
Kohnen recommends that if you are struggling with finding housing it’s a good idea to build relationships with property groups and keep your pulse on the market the best you can.
For the latest news, weather, sports, and streaming video, head to WFXRtv.
