Rent-Burdened Residents: Arizona and Nevada's Rising Housing Costs

Arizona and Nevada see major increases in housing costs

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Rent in Arizona and Nevada has been increasing over the past two years. This increase has many residents spending 30% or more of their monthly income on keeping a roof over their heads.

Arizona went from 46.5% to 54% of their renters spending at least 30% of their budget on rent - and Nevada went from 48.4% to 53.7% of renters.

Nationwide, approximately 22 million renters are shouldering that percentage. Anyone paying more than 30% is considered “cost-burdened,” according to the U.S. Department of Housing and Urban Development, and may struggle to pay for other necessities, such as food, clothing, transportation, and medical care. - TIM HENDERSON - North Platte Post contributor

Alison Cook-Davis, Associate Director for Research at Arizona State University’s Morrison Institute for Public Policy, said,

"Because of Arizona's low wages, a housing shortage, along with short-term rental agreements and vacation homes, it is eating away at the stock of affordable housing for renters."

“You’ve got people across the state kind of pulling their hair out, saying ‘I thought Arizona was supposed to be the affordable state,’” Cook-Davis said.

In a story by Chris Bruen, the Senior Director of Research at the National Multifamily Housing Council (NMHC) in Washington, D.C., he said that over half of all U.S. apartment households were cost-burdened in 2020.

This means they were paying more than 30% of their budget on rent.

Bruen says there are three categories of cost-burdened renters:

1. Low-Earners -

These are households that are cost-burdened because they have so little monthly income.

2. Geographically-Burdened Households -

Members of this group earn a moderate income, but because they live in more expensive markets where there is a notable supply-demand mismatch, they are housing cost-burdened.

3. High-Earners -

These renters are very high-income apartment households. They choose to pay more than 30% of their income on rent, even though more affordable housing options are available to them.

A University of Nevada, Las Vegas, (UNLV) data brief revealed that in May the Las Vegas area had the highest percentage of cost-burdened renters in the state at 58.3%. This even tops the New York City metro area - rolling in at 52.6% and the San Francisco metro area at 48.9%.

The Lied Research Report: The Lied Center for Real Estate • University of Nevada, Las Vegas Percent of Excessively Cost Burdened Renters byPhoto byliedcenter.unlv.edu

Both states and their residents are looking for answers. Some people have had to leave their apartments or homes because they were out-rented. In some cases, rents increased by as much as 40-60%.

Then there is the king of cost-burdened states - Florida! It is at the top as being the most excessively cost-burdened state.

Christopher McCarty, director of the University of Florida’s Bureau of Economic and Business Research said,

“Florida isn't the deal it used to be. Unfortunately, Florida still has disproportionately lower-paying jobs compared to other states, and rents are increasing compared to other states as well.”

The states with the lowest rates of cost-burdened renters are the Dakotas, Kansas, Nebraska, and Wyoming.

However, I liked the parting words of the Director of Research Alison Cook-Davis said about the future:

"There's hope for Arizona and other states with increased home construction", Cook-Davis said. “If you keep building, eventually this will sort itself out. But that could take years. It's a slow process."

Peace, Love, and Unconditional Happiness!

North Platte Post - Rent is eating up a greater share of tenants’ income in almost every state (northplattepost.com)

The Lied Research Report - PowerPoint Presentation (unlv.edu)

Tim Henderson - Tim Henderson, Author at Stateline

National Multifamily Housing Council - NMHC | A Closer Look at Cost-Burdened Renters

Chris Bruen, Senior Director of Research at the NMHC - https://www.nmhc.org/about/staff/christopher-bruen/