Friday, September 23, 2011

Kelly Waldron Reporting

More renters across the nation and in New Jersey found housing unaffordable last year as incomes declined and more are likely to be squeezed this year as rents continue to go up. That's according to 2010 Census Data which finds that the share of renters paying 30 percent or more of their income on housing costs rose 53 percent last year.

"If income is not keeping up with the cost of housing, that puts people in a very bad position even if the rent doesn't go up," according to Arnold Cohen, Policy Coordinator for the Housing and Development Network of New Jersey. "People end up making choices that are not the best for them, which could mean paying more than they can afford for rent. In extreme situations, people double up. We're hearing more and more stories of adult children moving back in with their parents."

As more homes go into foreclosure, more people are in the market to rent. While the cost of buying a home may be lower, it's more difficult to attain. "It is much harder to get a loan to be able to purchase," said Cohen. "Even though the price of ownership may have gone down, banks are not easily parting with the money."

Nationwide, the homeownership rate dipped last year to 65.4% from 65.9% the year before. Meanwhile, rents are expected to rise about 4% this year and will rise again in 2012. Strong demand is driving rents up as well while skittish consumers are delaying home purchases, given concerns about the economy.

"At some point, New Jersey needs to come up with a housing policy to address the various housing needs of people in the state," said Cohen. "By creating more housing opportunities, we can stimulate the economy, put people back to work and make housing more affordable."

Townsquare Media - Copyright 2011. All Rights Reserved.