Study: Rental Homes Becoming Out Of Reach


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(Sacramento, CA)
Tuesday, April 14, 2009

A new report says a majority of renters - 51% - don’t earn enough income to afford a typical two-bedroom unit. That’s up from 49% last year.

Dean Baker is with the Center for Economic and Policy Research…a liberal think tank. 

He says one solution is to make it more attractive for banks to turn foreclosed homes into rentals. 

“In many areas you have vast amounts of abandoned homes/foreclosed properties that could provide good rental if the owners had the right incentives to convert them into rental units and to make them available. And at the moment at least that’s not what’s going on.” 

The study says a household must earn $40,880 a year to afford a typical two-bedroom apartment in the Sacramento area. An average one rents for more than $1,022 a month.
 
The new numbers come from the National Low Income Housing Coalition, a Washington DC based housing advocacy group.