Housing demands have spiked though this has been an issue prior to the Covid-19 pandemic. It was reported in 2020 renters were paying over half their income to pay for housing, according to CNBC. Though the rule of thumb is only 30% should be used toward housing. However, for many middle-class and low-income renters, this is impossible as 50% of their income is dedicated to paying to rent.
Currently, the median rent has increased 11.4% in 2021 alone mostly because of the rising population that is working from home that is moving to more affordable areas. This is causing a spike in rental costs for those native to these areas. There is the factor that wages have been stagnant for years and now with rising costs because of inflation, affordable housing is now becoming a thing of the past. Though there are affordable housing advocates such as The National Affordable Housing Trust and Volunteers of America this is continuing to become a growing issue in the United States with no chance of slowing down.
This has also been attributed to the massive job loss because the pandemic led the Federal Government and the CDC to issue an Eviction Moratorium. Later Launching The Emergency Renter’s Assistance Program. This allotted $46 billion in assistance for states to assist with rental payment for job loss due to Covid-19. There are currently renters who have applied that are still waiting for assistance in many states across the country as evictions have resumed. As these evictions are posted to the renter’s credit reports time will tell if this becomes a factor in rising rental costs in the future.