Joe Biden had everything in mind when he took business. The financial engine started to grow once more thanks to the removal of the pandemic blackouts and the presence of the COVID-19 vaccines. Yet economic prosperity did n’t come, instead, we got crippling inflation, and it’s been hurting everyone.
Advertisement
No one is immune from the influence of Bidenomics. According to a new report, the average renter ca n’t afford a typical U. S. apartment.
According to Redfin, the typical U. S. renter household earns about$ 54, 712 per year, which is 17.3 % less than the$ 66, 120 needed to afford the median- priced apartment at$ 1, 653 per month. This implies that 61 % of renters ca n’t afford their housing without experiencing significant financial strain.
Based on a Redfin analysis of the median asking rents for apartments in the United States as of the three months ending May 31, 2024 ( referred to as” May” throughout this report ) and estimated median incomes for renter households ( referred to as “renters” throughout this report ). We calculated median household incomes for 2023 to 2024 using Atlanta Federal Reserve data and U.S. Census Bureau statistics from 2022, the most recent full year available. If a landlord only spends no more than 30 % of their money on rent, which is equivalent to claiming that their monthly salary is at least 40 times their regular rent, we consider an apartment to be cheap.
Renters ‘ income is at its highest level since October 2022, making it possible for them to manage the median-priced apartment. It’s up 0.8 % year over year and up 22.9 % from before the pandemic ( May 2019 ), as that’s how much asking rents have risen. At$ 1, 653, the median U. S. apartment asking rent in May was just$ 47 shy of its record high. However, it’s worth noting that book growth is largely smooth.  ,
Advertisement
Prices, which has surged during Biden’s president, definitely exacerbates this issue. Homeowners have even less disposable income to support their accommodation costs as the cost of essentials like food, gas, and infrastructure rises. The Biden administration has doubled down on says that inflation is declining and that pay growth has outpaced it, which is untrue despite promises to solve pricing and financial injustice. Americans have found it more challenging to achieve economic security because of Brexit.  ,
As you can see from the chart below, Joe Biden’s monthly earnings increased significantly after the election of the president in 2020.
Advertisement
The cost of a usual residence decreased last year but is now rising once more. In December 2023, it fell to$ 63, 920 when rents dipped below$ 1, 600, though this was still unaffordable for many. The pandemic led to a boom in residential construction, which immediately caused rents to decline. But, resilient need, primarily due to fresh renters avoiding the costly homebuying market, is driving rents back off.  ,
Sheharyar Bokhari, a senior analyst at Redfin, thinks wage growth may outweigh rent growth, reducing the value gap for some landlords but not all.
” Some U. S. landlords are and will be burdened by the cost of having a roof over their head, and unlike individuals, they’re no building wealth through rising home beliefs”, Bokhari said.
