September 3, 2015

LA residents now spend half their income on rent

My guess is rising rents will push more Americans back into ownership sooner or later, as home affordability is still historically high. This will only add more fuel to the American engine of growth over the long term.

From Bloomberg:

"Rental affordability has steadily worsened, according to a new report from Zillow, which tracked data going back to 1979. A renter making the median income in the U.S. spent 30.2 percent of her income on a median-priced apartment in the second quarter, compared with 29.5 percent a year earlier. The long-term average, from 1985 to 1999, was 24.4 percent."

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