August 2nd 2023.
Renters across the country are facing increasingly difficult times. In the past three years, rents have skyrocketed nearly 20%, while wages remain relatively stagnant. This affordability crisis has put nearly 20 million renters in a tough spot, with many having to spend more than one-third of their income on rent every month.
The pandemic, coupled with growing economic inequities, has only worsened the situation. Renters are now having to make difficult decisions, such as forgoing medical treatments, moving farther away from opportunity centers, and commuting for longer distances. Some may even become homeless.
The issue of high rents and lack of credit doesn’t just affect people renting apartments, but the economic growth and health of the entire community. This doesn’t need to be the future, though. There are smart policies and tools that can help renters achieve economic security and mobility.
One such policy is the introduction of a single, flat fee rental application tool, which would help renters save both money and time. Increased transparency when looking for a new home is also essential, as it can empower renters to make the right budget choice.
Rents remain high, and many low-income households are struggling to make ends meet. Housing vouchers can help, but there are currently ten times more qualifying households than available vouchers. Therefore, increasing funding and reforming the formula used to calculate rent growth and the value of vouchers is key.
To create lasting change, more must be done to help households build credit. This would especially benefit Black and Latinx renters, who have fewer opportunities to access the formal credit system. That’s why Zillow is working on allowing positive rental payments to be reported to credit bureaus.
Finally, building more houses is perhaps the most effective way to create lasting affordability for renters. Reforming zoning rules to encourage more types of homes is something that a vast majority of homeowners and renters want to see happen.
By pairing near-term fixes with long-term solutions, we can create a more accessible housing market that opens doors for more people. Helping renters achieve financial security and mobility shouldn’t be a distant dream, but a reality.
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