The multifamily industry has seen record demand and revenue growth over the last five years, but that is coming at a cost to their residents.
In the newly released 2015 rental housing report from Harvard University's Joint Center for Housing Studies, the authors detailed how rental trends are still growing despite the surge in new deliveries over the last few years. The share of U.S. households who rent rose to 37% this year, the highest level since the mid-1960s.
However, the 8.2 million units added in the past decade still doesn't seem to be enough to meet the demand. The median rent in 2014 experienced a 26% increase from 2013 to $1,372, while roughly 1 in 5 renters earns less than $15,000 and would require rents to be lower than just $400.
Christine Serline, writer for Affordable Housing Finance, notes:
Of the nation’s 43 million renter households, nearly half—a record-setting 21.3 million in 2014—face housing cost burdens, spending more than 30% of income on housing and utility costs. This includes a record-setting 11.4 million renter households with severe housing cost burdens, meaning they spend more than 50% of income on housing and utility costs.