Increase In Rent But Not Income

House Rental

Rent in Southern California seems to be rising faster than people can make the money to pay their bills. In some areas of Los Angeles and surrounding counties, rent amounts have doubled over the past decade. This is an increase that is almost twice as fast as the cost of living for this part of the country. There are people who struggle every day to afford the rent that they have to pay because they aren't making the money fast enough to pay all of the bills that are due each month.

The rest of the nation is feeling the impact of rental increases without an increase in pay. The gap in inflation is growing at an astronomical pace. There are a few factors in the inflation gap that include the overall basket of goods and services as well as the costs associated with renting a dwelling. Even a standard apartment has increased in rental amounts. The rent index is calculated based on surveys that are given to homeowners in the area. Home owners complete information about how much they make and how much they spend each month. The amount that they spend is often more than what they make or on the border with how much they make. Rental indexes are up 4.2 percent while income indexes are only up 3.5 percent.

These rates aren't catching up to each other fast enough. There has been a steady growth in the number of apartments and homes being built in Southern California. Because of the modern housing, the cost of renting has increased. One thing that residents in this part of the state can keep in mind is that it's the same way across the rest of the country. There are many states that are seeing the same conflicts with a lack of income and a rise in how much has to be paid.