Dark Side to Rent Increases

Many markets are enjoying rent bumps, which is good news but reminds us of bad:More than a quarter of the working poor to moderate income renters in the US are severely burdened by housing. That means they spend over half their income on rent.

TheCenter for Housing Policy's Janet Viveiros tells us a small rise in income among the working poor from 2010 to 2011 may help make headway, but as long as such a large proportion of earnings go to housing, food and healthcare are often sacrificed (to say nothing of Netflix subscriptions). Janet says its important to maintain funding for affordable housing programs like housing vouchers or LIHTC (which also leverages private resources). Janet and colleague Maya Brennan say more housing options should come through both renting (bring down rates through funding streams like HOME) and ownership (down payment assistance).

Enterprise Homes CEO Chickie Grayson tells us her company has been using Maryland's new Rental Housing Works funds for rental projects but is also working on a 115-unit, for-saleworkforce housingproject in DC called Renaissance Square that'll deliver in2015. Thelong slogof affordable housing developments is paying off, she says. At Enterprise's MetroTown in DC, where 42 affordable rentals and 83 for-sale units will deliver by 2016, two former residents of thepublic housing rentalsthat previously stood there are on track to purchase units.

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