Wed 13 Jul 2011
A Heartbeat from Homelessness: Rising Rents in the Foreclosure Crisis
Posted by homelessnesslaw under housing @ 2:46 pm on July 13, 2011No Comments
It’s disturbing that millions of people have lost their homes to foreclosure, but at least you’d think that foreclosures would mean more available, affordable homes for low-income renters on the verge of homelessness. Sadly, you’d be wrong. Renters lose in the foreclosure crisis too.
One article from Minnesota takes a hard look at the common misperception that foreclosures make renting more affordable. The reality is that rental costs are increasing, even though the cost of buying a home is falling and banks are holding countless unoccupied and non-revenue producing homes that are costly to maintain.
In Minnesota, for example, statewide rents increased an inflation-adjusted 7 percent from 2000 to 2009 while the income of renters fell 21 percent. That’s a one-fifth decrease in income. What would you have to cut out of your budget to live on one-fifth less? For Edward G. Robinson, the answer is food. After rent and utilities, Robinson lives on $20 per month. To get by, he eats at a Dorothy Day drop-in center. (more…)
