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Rents up over 10% in the last year, groups advocate for a cap

Workers need to make average of $20 an hour to afford 1-bedroom apartment, report says
Posted at 11:02 AM, Oct 21, 2022
and last updated 2022-10-21 12:10:12-04

There has been an over 10 percent jump in rent costs compared to this time last year, according to Realtor.com data.

Their economist is predicting it will be at least another year before rent increases go back to the average pace of growth before the pandemic.

Renter advocates say they've been hearing from so many people recently who can't afford these types of rent hikes.

“Research for the last several years has indicated that minimum wage workers working full time can't afford a two-bedroom apartment in any American county,” said Tara Raghuveer, director of KC Tenants. “That's still the truth now, and that truth is exacerbated. And now doesn't just apply to minimum wage workers, low-wage workers, but people up and down the income brackets as well.”

Raghuveer is now part of a national push to help renters who have been facing big hikes when they renew their leases.

“We're saying, you know there should be a reasonable cap on how much you can expect your rent to go up between these periods,” Raghuveer said.

Renter advocacy group House Us and the Homes Guarantee Campaign are talking with federal leaders about a possible cap of about 2 to 3 percent.

They're proposing this would apply to properties that receive federal financing through Fannie Mae or Freddie Mac as a loan condition.

It's unclear whether this could apply to apartments with existing loans, or just new ones receiving loans.

Renter advocates hope we could see some kind of federal action around rent in the next few months.