The Rising Rent Problem

 Let me start this out by say this is not an article compaining of any conspiracy, or hating the rich or any of the nonsense you read all over the internet. However there is a big problem going on with real estate prices and we as a country need to realize it before the inevitable happens.

 A good amount of Americans are renters since the recession and although recent job data tells you job growth is rising I don't think anyone is excited about their part time Walgreen's job. Because of this, real estate has sky rocketed much like the stock market in recent years. This is good to a certain extent. When real estate came back from the crash it was good for this country. However once the real estate boom inflates the cost of living it becomes a bad thing and that's exactly what's happening right now.

The average rental rate in America is over $1000 right now. People hear this and say buy a house. But what about the millenials moving out of their parents? It's ridiculous to force them or anyone into a 30 year mortgage just to get a reasonable rate of living. The problem is you're also stuck in a mortgage, many of which are sky high right now due to rising prices. Either way you lose when you think about it.

 I currently had my rent increased from 1100 to 1300 in my own apartment. I tried relocating to a cheaper location (I would have been saving about $100 a month from what I was previously paying) but was told I  now make too much. Keep in mind, you're told this in Florida if you make 35,000 or more a year. How does this make sense? People say this makes sense so that people with lower income can afford it. Keep in mind, I'm looking at an apartment for $1000. Why would apartments for these prices be reserved for someone with low income? When I see things like this and then most people say they don't have any savings it's no wonder why.

People have tried looking for cheaper solutions only to have zoning or construction laws get in the way. So this is where something needs to give. Obviously greed is driving up rental rates to unsustainable levels. This is inevitable and eventually the market will correct itself as it usually does. However if you have laws restricting people from cheaper options you almost force these insane rental rates or mortgages on the people. If people who make 40,000 or more a year are forced to pay over one third of their earnings on just having a space to live while not including taxes, utilities, living costs, etc. how can people ever save up?

If we keep going the same way we're going things will crash just like they did before. Lawmakers have to allow renters more flexibility. If they allow people cheaper housing options (no i'm not talking about parking a trailer in a neighborhood) rather then forcing laws on landlords the market will correct itself without government sticking its nose in business. They can keep talking about lower energy costs all they want. It means nothing when your housing costs are insane. As I said before, something needs to give here. Hopefully it wont be the economy this time.