Increasing Rent

A traditional list of basic needs for most people include food, shelter, and clothing. This would lead to most assumptions that the price of these things would be relatively cheap, so everyone could afford them. The problem is that while food and clothing may be cheap, in today's society "shelter" is more expensive than ever. This is especially true in relation to housing and overall rent for different groups across the United States, which are highlighted with different excerpts and statistics below. 

Millennials:

"Younger adults are spending a stunning amount of money on rent — $93,000 by age 30, according to a new study. More important, rent sucks up about 45% of their income during this first, critical decade in the workforce. That leaves precious little left over to save for a down payment and work towards entering that second phase of adulthood — household formation."

Population of Detroit:

"In 2013, the average rent in Detroit was $765 which made of 37 percent of the median household income that year. Compare that to 2016's average rent of $995 making up 42.5 percent of the median household income."

Entire United States:

"The median rent in the United State rose 2.8 percent over the past year to $1,445, the fastest pace of appreciation since May 2016, according to Zillow. Rents are rising fastest in some expected markets, like Seattle and Sacramento, California, and in some unexpected places, including Minneapolis and Atlanta."

This increase in rent and overall prices for housing have placed a huge burden on many people. This has led to sacrifices of other essential needs and a slight increase in homelessness throughout the country. What other options do these people have?

Questions:

What regulations can be put into place to solve this issue?

What current laws target this exact issue? How effective have they been?

What are some potential solutions to reduce the effects of increasing rent in the local Michigan community?

 

Sources:

https://www.usatoday.com/story/money/personalfinance/real-estate/2018/05/18/millennials-spend-large-percentage-income-rent/609061002/

https://www.mlive.com/news/index.ssf/2018/01/rent_increases.html

https://www.cnbc.com/2018/03/22/rents-are-rising-at-the-fastest-pace-in-almost-two-years.html

https://www.theguardian.com/us-news/2017/dec/05/america-homeless-population-2017-official-count-crisis

 

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