More than half a million people were homeless in the U.S. in 2017 according to the Department of Housing, although some reports place this figure much higher. Still, this is the first increase in homelessness since 2010. Income growth not keeping pace with rising rent prices has caused an affordability crisis that has put more people on the streets.
According to a report from Zillow, communities where people spend more than 32 percent of their income on rent can expect a more rapid increase in homelessness. The median rent price nationwide has risen 11 percent over the past five years although in West Coast markets like San Diego, the increase has been much more pronounced.
The report admits that rising rent prices are just a statistical starting off point and that other factors, like a shortage of housing also contribute to rising homeless populations.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.