2014 is a year where many people are facing increased rents.
Betsy, for example, just got a notice that her rent would increase in June from $749 to $819, a $70-a-month increase. As our property values return and the monthly rent prices increase, what can individual households that can’t keep up do?
Betsy and her roommate have a nice apartment on the ground floor in a township they like. They are near public transportation and life is good. Betsy attends the local community college. They were struggling to get the rent paid, but it was worth it. In June, they know they are not going to be able to afford this place. Betsy has looked and looked in her current township and in the township next to it. She wants what she has now for what she is paying now and has not found it. She does not want to leave her town or lose the amenities she has.
People with lower incomes are getting priced out of some areas. Supply and demand has casualties. What about subsidized apartments? There are few in her area, there are tremendous waiting lists for them, and the rent is based on 30% of the household’s income and would not be much less then they are paying now.
Getting a housing subsidy can be a long-term plan to work on, but takes more time then what she currently has. Her options are to get a place that has fewer amenities and less desirable in her community, move out of her community, or figure out a way to pay the increased rental amount.
The U.S. Department of Housing and Urban Development website offers a page explaining Rental Assistance programs and links.