An estimated 31 million U.S. renters expect to vote in the mid-terms as incumbents brace for the worst
You can’t blame U.S. renters for being agitated over the state of their housing experiences in 2022.
Like almost every other commodity these days, rental units are rising in price at an accelerated rate in late 2022. According to Zillow, rental prices rose by 12.3% in August, contributing to a market landscape where the typical monthly U.S. rental property rose to $2,090. That’s up from $1,660 in August, 2020.
According to a new study, most American rental consumers are well aware of the rising costs of housing and are planning to make their voices heard at the voting booths this week.
Dwellsy, a home rental listing platform, reports that 75% of the nation’s 44 million renters plan on voting in the mid-terms elections. Company officials say they’re a good reason for that turnout.
“In the past year, median asking rent rose by 29%, with some U.S. cities seeing more than a 100 percent increase in rent prices,” said Dwellsy chief executive officer Jonas Bordo. “It’s safe to say that skyrocketing rent has gotten renters’ attention.”
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Renters in Financial Peril
A separate study of younger U.S. renters notes the severity of the crisis, as apartment dwellers scramble to keep roofs over their heads.
According to Grubb Properties, a real estate fund management company, more than 51% of young renters reported they experienced a rent increase in the past year, with an average increase of 30%.
“Of these renters, less than one in 7% said they had the resources to cover the increase without changing their lifestyle,” Grubb reported.
As for the remaining 93% plan, all seem to be hustling to make their monthly rental payments, as follows:
– 54% are cutting back on extra purchases.
– 39% are looking for a new job or side gig.
– 35% are looking for a new place to rent or live.
– 22% said they’d consider using their credit cards to cover the rent.
– 17% would consider asking a friend or family for help with rent
– 12% would consider adding a roommate to help defray costs
– 7% would consider selling their car to cover rent
“If rents increased to the point that young renters needed to move, they would consider more aggressive steps,” the study added. “40% say they would move to a smaller, less expensive apartment, while 36% would pack up and move to a cheaper geographic area.”
Additionally, one in five younger renters would consider moving back home with their family members, the Grubb study reported.
Revenge of the Rental Consumer?
The Dwellsy report described U.S. renters as a “disillusioned bunch” that largely believes politicians on both sides of the aisle don’t care about positively impacting renters. Of those surveyed, 80% of renters say that elected officials won’t pass laws to help them out.
“Their answers seem to reflect a lot of disillusionment in politicians and, really, a lack of trust in the current two-party system,” notes Bordo. “Again, this is not surprising given the struggles renters have experienced over the past year or so.”
Financial professionals are hardly surprised American renters are up in arms right now – and they don’t blame them for taking their frustrations to the polls.
“Any time the cost of housing is more than a person’s two-week paycheck, it’s a recipe for financial disaster,” said eLuxury’s chief revenue officer Emily Saunders. “Couple that with rising inflation, and you’ll find people in large numbers failing to make ends meet.”
That’s not good news for politicians with their names on a ballot.
“Renters are motivated to go to the voting booths, and they’ll be motivated to remove whoever – and whatever party – is in power,” Saunders said. “That’s the reality right now.”
