Released: August 30, 2007

Plight for renters gets tougher

Source: Noelle Knox, USA Today

As the credit crunch shakes up the mortgage market, one group that’s suffering some severe collateral damage doesn’t own a home at all: renters.
Already, one in four renters are paying more than half their income on rent — the highest level in at least two decades — according to a study being released Thursday by the Center for Housing Policy. That’s up from one in five renters in 1997.

And the squeeze on renters will probably get worse. Rents are projected to rise about 4% this year and next. In part, that’s because of a shortfall in apartment construction. At the same time, more renters are renewing their leases because they can’t qualify for a mortgage. And rising foreclosures are turning some homeowners back into tenants.

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