Lawyer Referral Service

LRS Blog

Posted by: Maricopa Lawyers on Dec 8, 2014

The recent recession and subsequent housing downturn proved especially challenging among homeowners, but renters could potentially be facing worse circumstances.

Apartment renters and other rental properties are living closer to the poverty line in contrast to homeowners. Research suggests renters are not quite so knowledgeable about financial matters, making them especially susceptible to job losses and additional traumas.

The major concern regarding renters is they comprise a growing percentage of the population, and their classification as being ‘financially fragile’ has precarious implications in regards to the US economy.

Homeownership is considered an integral aspect of attaining the American dream, and more and more people are finding this an elusive feat. The latest figures show that nearly one-third of the population, at a rate of 36 percent, rent their property.

The majority of renters are younger than homeowners and more likely to be unmarried according to a report released recently by the Finra Foundation. It also stipulates that renters are far less likely to possess college degrees and they’re in many cases unemployed.

Making ends meet is a serious obstacle among renters. Among the renters included in the FInra Foundation survey, as much as 24 percent reported that they find it very difficult to cover their monthly bills – a figure double that of homeowners.

An overwhelming majority of renters, 58 percent, reported that they’d have trouble providing $2,000 in the span of 30 days to manage unexpected medical expenses or car repairs; compare that to 29 percent of homeowners.

Renters aren’t subscribed to making monthly mortgage payments, and yet they’re far from debt-free. Many of these individuals are often plagued by credit-card bills, medical obligations, student loans and auto debt.

Unlike mortgage payments, many of these debts typically are not tax deductible – student loan is partly deductible – which can keep many renters underwater.