Study Says High Rents Causing More Problems In U.S.
Carol McCarthy | Apr 24, 2018 AT 9:57 am
(Undated) -- High rents around the U.S. may be starting to cause problems in the general economy. A Pew Charitable Trusts report on the Great Recession finds that more and more households are violating the old axiom that you shouldn't spend more than one-third of your income on housing. Erin Currier, the director of Pew's Family Financial Security and Mobility Project says "rent burdened" is defined as someone spending more than 30 percent of their income on rent. And Currier says many elderly people and African-Americans are spending half of their income on rent. Currier says rents based only on what the market will bear are now a drag on the general economy and policymakers need to start encouraging lower rents.