There is a shortage of rental housing in the U.S., especially for the working poor, a new study released by Harvard University revealed on Tuesday.
The study found that the supply of affordable rental housing has not kept pace with the demand, largely on account of a shortage of apartments, a key source of new rentals. After the bust of the housing bubble and the deterioration of the economy, developers shied away from such projects, which in turn drove down vacancies and boosted rents.
About 26 percent of renters, or 10.1 million people, spent more than half their income on housing and utilities in 2009, the study found. That’s because incomes have been declining from their peak at the start of the decade, even as rents kept increasing.
Renters should not spend more than 30 percent of their income on housing, the study said. But, low income renters have been hard pressed to stay within that limit, a situation beginning to affect moderate income earners, as well.
The study found that by 2009, 7.5 percent of moderate income renters, spent more than 50 percent of their income on rent, twice as many as in 2001.
