{"id":3440,"date":"2015-05-26T17:09:43","date_gmt":"2015-05-27T00:09:43","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=3440"},"modified":"2016-12-27T14:26:12","modified_gmt":"2016-12-27T22:26:12","slug":"do-higher-rent-prices-mean-more-evictions","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/do-higher-rent-prices-mean-more-evictions\/","title":{"rendered":"Do Higher Rent Prices Mean More Evictions?"},"content":{"rendered":"

\"Rents<\/a>It is no secret in our industry that rents are rising at a faster rate than incomes across the country. \u00a0And while property managers may be excited about the prospect of collecting more rental income as they adjust their prices to match market rates and demand, they will also encounter less qualified tenants as the burden of rent on income effects where they will live.<\/p>\n

CNN Money<\/a>\u00a0<\/b>reported that rent prices rose 7% in 2014, while incomes went\u00a0up only 1.8%. \u00a0The disparity between rent and income leaves most renters spending more than 30 percent of their income on rent, according to data collected in Zillow\u2019s 2014 Q4 Affordability Index<\/a>.\u00a0Some regions saw an even rent to income ration, like San Francisco, where\u00a0median rent payments ($3,031) were as much as 44 percent of the area\u2019s median income ($82,590) in Q4 of 2014. \u00a0Historically, between 1985-2000, rent payments consumed roughly 25 percent<\/a> of a renters income.<\/p>\n

Rising rent prices are effecting economically vulnerable people most drastically. \u00a0More expensive rents mean less options for affordable housing and leaves some renters displaced when they find they can no longer make regular rent payments from their income.<\/p>\n

According to Zillow<\/a>, some renters will find themselves in a position where one missed paycheck would result in an eviction due to a missed rent payment. \u00a0U.S. eviction statistics have seen a dramatic increase in the past few years. \u00a0According to the New York Times<\/a>, from 2010 to 2013, Maine experienced a 21 percent increase, 11 percent in Massachusetts, Kentucky 8 percent, and New Jersey had one eviction filing for every six renter households. \u00a0The San Francisco Chronicle<\/a> reported a 38 percent increase in SF evictions between 2010-2013.<\/p>\n

Renters are forced to consider downgrading to a smaller or less desirable homes, find roommates<\/a>, or face an eviction. \u00a0Even for renters who planned on buying a home in the future, their plans may be delayed as more income goes toward rent payments instead of saving for a down payment.<\/p>\n

To further understand the scope of challenges faced by renters who experience increasing rent prices, Zillow conducted a nationwide renter survey<\/a> which revealed:<\/p>\n