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| Is Housing Too Expensive? |
The face of America's population is changing by the day. With
the onset of many lower-income jobs and the flux of workers in
the job force who are making the federal minimum wage, the
financial situation of the country's population has been
shifting. Along with this shift comes the inevitable shift in
the country's housing situation. With incomes and housing rates
in flux, America's housing situation has been steadily worsening
and may very well reach a crisis point in the near future.
In many areas of the US, a recent study finds, the average
minimum-wage worker cannot afford the rent and utilities on an
average apartment. This study assumes that no more than 30% of a
worker's income goes towards rent and |
utilities- the government
considers a percentage higher than that to be too much. In a
country where owning a home is a major status symbol, it is a
cause of real concern when a large segment of the population
cannot even afford to rent one. Are real estate costs getting
out of control?
For an average two-bedroom rental apartment in the United
States, the average worker must earn, according to the
government, in the area of $15 an hour. With the minimum wage
currently at about a third of that amount, the fact is that many
families cannot afford to keep the roofs over their heads, much
less save money to someday buy a home. The fact remains that
wage increases have simply not kept up with the booming costs |
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of
real estate rentals and utility costs. While rent costs are
climbing, utility costs are climbing faster still. And it's also
worth noting that in areas where housing costs are lower, wages
are on average also lower, so there is not much benefit to be
gained by relocating. The minimum wage has not changed in the
United States since 1997, while the costs of housing continue to
rise.
The US government has also fallen behind on their spending
towards Section 8 rental vouchers, which help low-income people
pay their rent. More landlords than ever before, particularly in
metropolitan areas, accept Section 8 vouchers; but since
government spending towards these vouchers has not kept up with
demand, they are |
becoming more and more difficult to get. As
housing costs increase, those who depended on Section 8 can no
longer do so.
Not surprisingly, rent in rural areas is the most affordable,
and California is at the top of the list when it comes to hourly
income needed to afford a typical apartment. It's a difficult
situation for anyone who is having trouble making their rent:
The option to move somewhere cheaper, but make less money, is
not much of an option.
About the author:
Kirsten Hawkins is a real estate expert from Nashville, TN.
Visit http://www.king-of-real-estate.com/ for more information
on real estate, mortgages, and finding the house of your dream.
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