According to Moody’s Analytics economic research, as rents throughout the country rise at a rate significantly greater than wage growth, housing for working as well as lower-middle-class Americans is becoming even more expensive.
The study reveals that although U.S. rentals have increased by about 135 percent since 1999, wages have only increased by roughly 77 percent.
According to research by Moody’s, which has been monitoring the average rent-to-income ratio in the United States for over 25 years, “last year, the share of American family earnings required for renting an average-priced apartment surpassed the rental-burdening 30 percent threshold for the very first time.”
“Rising mortgage rates kept potential homebuyers in their flats by making it too expensive for many people to purchase a home. As a consequence, rental demand soared and prices skyrocketed.”
“The only U.S. metro region where rent accounted for more than 30% of a household’s monthly paycheck in 1999 was New York. There, an average-priced apartment would have cost a family with a median salary about 54% of their take-home pay.”
“By the conclusion of 2022, rent burdens in seven metros were over 30 percent, with six of those metros being on the East Coast.”
Specifically stated in the research, “increased demand has placed pressure on rental prices and made it difficult for renters to come across affordable housing.”
A portion of this rise in demand can be attributed to the country’s decades-long massive immigration policy, which annually admits more than a million legal immigrants along with a million foreign workers with visas, in addition to the hundreds of thousands of newly arrived illegal aliens who joined the population and require housing.
According to Breitbart News, 333.3 million people lived in the United States in 2022. More than 80% of that population expansion may be attributed to legal immigration, which former President George H.W. Bush dramatically increased in the early 1990s and has not decreased since.
The U.S. population has increased by over 16 million since 1999 as a result of immigration.
Senator J.D. Vance (R-OH) said on Twitter that “housing expenses for average Americans increase when too many individuals are admitted. Stop Biden’s border crisis, and end his assault on home affordability.”
Even proponents of mass immigration have acknowledged that the program raises housing costs, particularly for Americans in the working and lower middle classes.
Mass immigration is “devastating for housing costs,” New York Magazine said last week, following other mainstream media publications like the New York Times as well as Wall Street Journal in making this admission.
Similar to this, a report by the Michael Bloomberg-funded New American Economy organization detailed how the decades-long immigration of tens of millions of people contributed to a $3.7 trillion increase in housing costs for the next generation of homeowners, but it misrepresented the amount as the development of “housing wealth.”