Why renters remain poor
If you are like 87% of Americans, you can
buy a home with no downpayment.
It is becoming a common phenomenon that renters remain poor or
are becoming poorer day by day. When the landlords and real estate owners make
money from their investment and become richer, the other side of economy finds
the renters even poor. Various reasons are attributed to the poor economic
status of the renter.
The increasing rent of household properties is the main reason for the poor life
of renters. Most of the renters are paying a high percentage of their income
towards the rent for their houses. Even though the income for renters is fixed,
they also have to find a means to pay the high rents. The percentage of income
paid towards rent is increasing day by day and most of the renters are paying on
an average of around 40% of their income towards the rent.
For an affordable living, the rent of the houses should not go beyond 30% of
their income. When this is violated and renters pay a higher amount than this
affordable percentage of income, the renters remains poor as always.
To make the situation even worse, none of the renters are getting any kind of
financial assistance from any government. They also cannot get any type of
housing assistance. The poor families find it difficult to get access to housing
assistance and subsidiaries. The end result is that they find it hard to get any
kind of extra support or income that can make their living standards go high or
improve.
The number of available housing facilities with low cost has exceeded the total
number of low income renters. This has added to the worst economic condition
prevailing in various parts of the world. As a result, a higher proportion of
the renters are forced to go for the only option available, the high rented
houses in their area. This makes renters even poorer.
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