Personal Housing Expenses See Biggest Jump in 8 Years

Sunday, August 30, 2015
(graphic: Steve Straehley, AllGov)

It continues to get more expensive to have a roof over one’s head, according to government figures.


According to a report (pdf) from the Bureau of Labor Statistics, the cost of shelter increased 0.4% last month, the biggest increase since February 2007. The cost of shelter has jumped 3.1% over a year ago, its largest year-over-year increase since January 2008. Part of the increase was due to a big jump in temporary lodging (i.e., hotels), but rent and its homeowners’ equivalent went up a solid 0.3%.


Rent already takes a huge chunk out of Americans’ paychecks, with as many as half of renters paying 30% of their take-home pay for a place to live. High rents affect poorer Americans the most. Not only do they pay more for rent now, but they’re unable to save money to buy a home of their own.


Part of the reason for increased rents is a shortage of available units. Last year’s vacancy rate of 7.6% was the lowest such figure in 20 years.

-Steve Straehley


To Learn More:

U.S. Housing Costs: Up, Up, Up, Up (by Bourree Lam, The Atlantic)

Consumer Price Index—July 2015 (Bureau of Labor Statistics) (pdf)

They’re Not “Poor,” but 31% of California Households Can’t Afford Basic Needs (by Ken Broder, AllGov California)

As Home Ownership Rate Drops to 22-Year-Low, Rents are on the Rise (by Noel Brinkerhoff, AllGov)

In No State can a Minimum Wage Worker Afford a One-Bedroom Rental for Fewer than 49 Hours of Work a Week (by Steve Straehley, AllGov)


Just Curious 8 years ago
And yet they claim there is no need for a COLA in Social Security payments this time around. I wonder how this comes about? It must be that always-defective right wing "logic" doing the math. What do you want to bet the legislators vote themselves a pay raise because housing costs are on the rise?

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