Is The Rent Too High?: Rent and Income in Virginia since 2007

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Is The Rent Too High?: Rent and Income in Virginia since 2007

  1. 1. “The Rent is Too High!”… Or is it? Examining rental costs as a % of household Income in the Commonwealth of Virginia since the recession to 2012.
  2. 2. The Rent is Too High!  “The Rent is Too Damn High”  Media catching slogan made popular by Jimmy McMillan, New York City Mayoral candidate in 2009 and 2010 of The Rent is Too High Party  McMillan and The Rent is Too High Party asserted that rental housing rates in the City of New York were too high  High rental rates were the cause of financial stress and high unemployment among the residents of the city Image 1
  3. 3. Rent isn’t just high In New York City it seems…      Harvard releases a study finding that rent is going up faster than incomes can keep up with 50% of renters (21.1 million) are identified as cost burdened ◦ 30% of gross income is dedicated to housing cost 28% of renters (8.8 million) are identified as severely cost burdened ◦ 50% of gross income is dedicated to housing cost Rents have increased (+)6% (20002012) while income earnings have dropped (-)13% during the same period Income has not kept up with rent rates and as such has increased income burdens for large amount of renters Image 2 Full Harvard Study Here: http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ahr2 013_05-affordability.pdf
  4. 4. Is the rent too high in Virginia?...  In the Commonwealth of Virginia 46% of renters are identified as cost-burdened % of Renter Households Income Encumbered 47% 46% ◦ 30% of income dedicated to renting costs ◦ According to 2012 estimates from the U.S. 46% Census Bureau’s American Community Survey data  43% of renters were identified as cost burdened in 2007 ◦ 3% increase from 2007-2012  The reported median gross rent in Virginia in 2012 was $1,068  In 2007 median gross rent was $892  From 2007-2012 rent in Virginia has increased 20% *Data Pulled from U.S. Census Bureau’s American Community Survey Fact Finder 45% 44% 43% 43% 42% 41% 40% 2007 2012
  5. 5. The rent may not be too high…still outpaces income  Rental prices have increased 20% from 2007-2012  Income has only increased 6% during the same time period ◦ 2007 Mean Income: $79,711 ◦ 2012 Mena Income: $84,641  Households reporting income greater than (<) $50,000 have increased 6% % Change in Income/Rent 2007-2012 25% 20% 15% ◦ More than 50% of households in Virginia report income greater than (<) $50,000  Households reporting income less than (>) $50,000 have decreased 2%  Households reporting income less than (>) $30,000 increased 0.5% 10% 20% 5% 6% 0% *Data Pulled from U.S. Census Bureau’s American Community Survey Fact Finder % Change in Rent % Change in Income
  6. 6. Summary       30% or more of gross income dedicated to housing costs among renters is viewed as “cost burdened” Harvard study shows on a national level that more renters are cost burdened Rental prices have increased at a rate greater than income Virginia rental rates have increased 20% since 2007 while income has only increased by 6% The % of Virginia renter households identified as cost burdened have increased by 3% since 2007 Despite increases in income, it does seem that rental rates have outpaced income in Virginia as well
  7. 7. References  Image 1 https://www.google.com/search?q=rent+is+too+high&rlz=1C1TSNO_enUS484US484&espv=210&e s_sm=93&source=lnms&tbm=isch&sa=X&ei=gtgbU8ENKGbygHoloCQDA&ved=0CAoQ_AUoAg&biw=1366&bih=667#facrc=_&imgdii=_&imgrc=sI Ww9lyS3ryDXM%253A%3BkccyCcCgpDHGXM%3Bhttp%253A%252F%252Fwbbw1.bwbx.io%2 52Fcms%252F2013-1209%252F1209_mcmillan_630x420.jpg%3Bhttp%253A%252F%252Fwww.businessweek.com%252 Farticles%252F2013-12-09%252Fharvard-study-finds-the-rent-is-too-damn-high%3B630%3B420  Image 2 http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ahr2013_05-affordability.pdf

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