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Friday, June 03, 2016

CAPITALISM IS GOOD

The Rent For A Two-Bedroom Is Too High Just About Everywhere

This excellent analysis by CityLab's Tanvi Misra of a recent report by the National Low Income Housing reveals a few alarming findings about the current real estate market. 

The first is that, on average, you will need to make $20.30 per hour to "comfortably" afford a two-bedroom apartment. 

The average hourly wage in the country is $15.42. 

Why is this? 

Well, there was that whole subprime mortgage crisis, which limited access to credit to lower-income folks. This led to a rise in demand for rental properties, which is not easy to meet since, well, you either need to convert existing properties or build anew. 

Which, like most things in capitalism, costs money. 

Still, while the higher income brackets have seen the boons of an ever-improving economy, minorities and other low-income citizens have yet to see a boost in their pay.

 In short, rents are skyrocketing and the people who need rentals the most cannot afford them. 

The only solution, even after raising the minimum wage to $15, is to expand the amount of available affordable housing.

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