A new study by the Harvard Joint Center for Housing Studies is painting a bleak picture for U.S. renters over the next decade. As the rental vacancy rate hit its lowest point in 30 years in 2015, the cost of rent is predicted to severely burden 13.1 million renters by 2025, compared to 11.2 million in 2013.
A severely burdened renter is one who spends more than half of their income on rent. Rental prices climbed 3.5% from June 2014 to June 2015, the highest increase since 2008. Economists are predicting rent rate increases to accelerate to the 5% mark in 2015 and 2016, one of the highest periods of rent growth on record, according to Bloomberg News.
Here's what we know about the cost of renting now and what the Harvard Joint Center for Housing Studies is predicting the renting scenario to be by 2025.
Meanwhile, mortgage rates are still near historic lows and there are several loan options that are making homeownership, down payments, closing costs, and mortgage insurance more affordable and accessible than ever.
If you're interested in getting out of the rental circuit, download our free Mortgage 101 Handbook for everything you need to know about buying and financing your first home.