David Bahnsen, founder and CIO of Bahnsen Group, is examining the real estate market as young homebuyers struggle with the ongoing housing crisis.
Residential evictions are on the rise in several major cities across the country as Americans continue to struggle with the cost-of-living crisis.
The number of eviction applications filed in the past year was COVID-19 pandemic The movement has begun in 10 cities across the country, according to the Eviction Institute, a research arm of Princeton University that tracks 34 cities in 10 states.
But the problem has worsened significantly in five cities, where eviction rates are at least 30% higher than before the pandemic began.
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Aerial view of skyscrapers in downtown Houston, Texas. (iStock/iStock)
The areas where evictions are increasing fastest are:
Gainesville, Florida:
In Gainesville, a college town known for the University of Florida, there were 1,627 eviction filings as of June, a 46% increase from the pre-pandemic average.
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Minneapolis-Saint Paul, Minnesota
Minnesota has seen 11,696 applications this year, a 44% increase compared to normal levels before the pandemic began.
Las Vegas, Nevada
There have been 47,741 eviction filings in Las Vegas so far this year, a 43% increase.
Las Vegas, Nevada also ranked highly. (iStock/iStock)
Houston, Texas 42%
Evictions in Houston are up 42% compared to average pre-pandemic levels, with about 82,957 filed as of June, according to data from Eviction Lab.
Columbus, Ohio 35%
Evictions have also skyrocketed in Columbus, with 35,130 filings as of June, up 37% from the pre-pandemic average.
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One reason for the rise in evictions is rising rents, which have been driving inflation for months. Pandemic LockdownPent-up demand and record high home prices have caused costs to soar.
Rising rents are a cause for concern as rising housing costs have a direct and serious impact. Household financesAccording to Census Bureau data, about 34% of households live in rented housing, but that figure is even higher for low- and moderate-income households: More than half of households with household incomes below the national median of $31,133 live in rented housing, about 52.6%.
A “For Rent” sign is displayed in front of a home on Dec. 12, 2023 in Miami, Florida. (Joe Raedl/Getty Images/Getty Images)
Generally, households spend about 7% of their annual expenses on rent, but households without college degrees spent almost 10% of their total expenses on rent in 2020.
There are several reasons why rents are rising, including rising prices leading to increased demand and Mortgage interest rates The increase is also due to low inventory and the demand for more space caused by the pandemic, which has shut many would-be homebuyers out of the housing market.
Rents for single-family homes increased 14% in 2022, according to CoreLogic.
