The rise in rental prices is one problem Americans are facing today. The Apartment List Rent Report sees a continuous rent increase in August of 2017. According to the report, the National Index is up 0.4 percent on a month-over-month comparison.
Some May Be at Risk of Being Homeless
In Zillow’s research, homelessness is creating a new risk as rents in the major metros are rising fast. It forecasts that New York City’s rents will rise five percent in the next year. If this happens, around 3,000 people will be forced out of their homes. It the same case, Los Angeles’ homeless population will be exacerbated by the rent hikes causing 2,000 people homeless.
Zillow, however, noted that this isn’t true to all major metros. Some cities with rising rents have experienced a decline in the homeless population. These metros include Chicago, Houston, and Tampa among others. Can this mean that rent hikes are compelling renters to finally be homeowners?
US Homeownership Rate is Growing
According to Trading Economics, new single-family home sales have increased 0.8 percent in June of 2017. It rose to 610 thousand from the previous month’s 605 thousand. It is evident that homeownership in the US is growing. The homeownership rate has increased in the second quarter of 2017. It increased to 63.70 percent from the 63.60 percent during the first quarter of the year.
Whether you choose to rent an apartment or buy a home you call your own, strive to never get close to being homeless. It is easy to get yourself lost in a financial jam, especially when you don’t create a good financial plan. What is the best way to prevent it from happening to you? Cut your spendings, build your savings and pay your debts. It is not an easy feat, but if you study your situation, you will be able to pinpoint where you can curb your spendings and save up more.