Renters Are 'Losing Ground': Paying More, Cutting Elsewhere to Make Up for It
NEW YORK (TheStreet) -- If you rent a home or an apartment, you're more likely to cut back on groceries, health care services and bank and investment savings.
That's a conclusion drawn from the Harvard Joint Center for Housing Studies and just another sign of the times as the economy inches forward.
According to the Harvard study, half of U.S. renters pay 30% or more of their income to their landlords, compared with 38% of renters who were paying so much a decade ago.
Regionally, the problem is worse.according to the Shimberg Center for Housing Studies. That's a disturbing sign as the number of apartment dwellers rises. Since 2004, the percentage of renters has risen to 35% from 31%, according to the Harvard report. "The gravity of the situation for the large proportion of renters spending so much of their incomes on housing is plain," says Eric Belsky, managing director of the Joint Center for Housing Studies at Harvard. "We are losing ground rapidly against a chronic problem that forces households to cut essential spending." Belsky says that higher rents takes cash from other important household needs.
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