1. “The Rent is Too High!”…
Or is it?
Examining rental costs as a % of household Income in
the Commonwealth of Virginia since the recession to
2012.

2. The Rent is Too High!

“The Rent is Too Damn High”

Media catching slogan made popular
by Jimmy McMillan, New York City
Mayoral candidate in 2009 and 2010
of The Rent is Too High Party

McMillan and The Rent is Too High
Party asserted that rental housing
rates in the City of New York were
too high

High rental rates were the cause of
financial stress and high
unemployment among the residents
of the city
Image 1

3. Rent isn’t just high In New York City
it seems…





Harvard releases a study finding that
rent is going up faster than incomes
can keep up with
50% of renters (21.1 million) are
identified as cost burdened
◦ 30% of gross income is dedicated
to housing cost
28% of renters (8.8 million) are
identified as severely cost burdened
◦ 50% of gross income is dedicated
to housing cost
Rents have increased (+)6% (20002012) while income earnings have
dropped (-)13% during the same
period
Income has not kept up with rent
rates and as such has increased
income burdens for large amount of
renters
Image 2
Full Harvard Study Here:
http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ahr2
013_05-affordability.pdf

4. Is the rent too high in Virginia?...

In the Commonwealth of Virginia
46% of renters are identified as
cost-burdened
% of Renter Households
Income Encumbered
47%
46%
◦ 30% of income dedicated to renting costs
◦ According to 2012 estimates from the U.S. 46%
Census Bureau’s American Community
Survey data

43% of renters were identified as
cost burdened in 2007
◦ 3% increase from 2007-2012

The reported median gross rent in
Virginia in 2012 was $1,068

In 2007 median gross rent was $892

From 2007-2012 rent in Virginia has
increased 20%
*Data Pulled from U.S. Census Bureau’s American
Community Survey Fact Finder
45%
44%
43%
43%
42%
41%
40%
2007
2012

5. The rent may not be too high…still
outpaces income

Rental prices have increased 20% from
2007-2012

Income has only increased 6% during
the same time period
◦ 2007 Mean Income: $79,711
◦ 2012 Mena Income: $84,641

Households reporting income greater
than (<) $50,000 have increased 6%
% Change in Income/Rent
2007-2012
25%
20%
15%
◦ More than 50% of households in Virginia
report income greater than (<) $50,000

Households reporting income less
than (>) $50,000 have decreased 2%

Households reporting income less
than (>) $30,000 increased 0.5%
10%
20%
5%
6%
0%
*Data Pulled from U.S. Census Bureau’s American
Community Survey Fact Finder
% Change in Rent
% Change in Income

6. Summary






30% or more of gross income dedicated to housing
costs among renters is viewed as “cost burdened”
Harvard study shows on a national level that more
renters are cost burdened
Rental prices have increased at a rate greater than
income
Virginia rental rates have increased 20% since 2007
while income has only increased by 6%
The % of Virginia renter households identified as cost
burdened have increased by 3% since 2007
Despite increases in income, it does seem that rental
rates have outpaced income in Virginia as well

7. References

Image 1
https://www.google.com/search?q=rent+is+too+high&rlz=1C1TSNO_enUS484US484&espv=210&e
s_sm=93&source=lnms&tbm=isch&sa=X&ei=gtgbU8ENKGbygHoloCQDA&ved=0CAoQ_AUoAg&biw=1366&bih=667#facrc=_&imgdii=_&imgrc=sI
Ww9lyS3ryDXM%253A%3BkccyCcCgpDHGXM%3Bhttp%253A%252F%252Fwbbw1.bwbx.io%2
52Fcms%252F2013-1209%252F1209_mcmillan_630x420.jpg%3Bhttp%253A%252F%252Fwww.businessweek.com%252
Farticles%252F2013-12-09%252Fharvard-study-finds-the-rent-is-too-damn-high%3B630%3B420

Image 2
http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ahr2013_05-affordability.pdf