Are you making enough to afford rent in Alabama? UA study reveals roughly half are not
You might not be making enough to comfortably afford rent, according to a new study from the University of Alabama.
BIRMINGHAM, Ala. (WBRC) - A new study released by the University of Alabama looked at 12 metro areas across the state and found on average, people are making slightly less than they would need to comfortably afford rent.
The median household income for Alabamians is $56,900 dollars, but according to that study, you need to be making at least $58,800 to comfortably afford rent.
This study, which used Zillow rental data, shows the average renter in Alabama pays about $1,450 monthly.
In the study, consumers are considered rent-burdened when they spend 30% or more of their incomes on rent, lessening the ability to pay for other necessities.
Professor Bennie Waller with UA says larger interest rates for mortgages are one reason many are looking to rent while they save for larger down payments.
“As more and more people rent, the market is getting tighter and tighter, rents are going up, there are fewer opportunities for people to rent, prices have been going up in terms of the rental market, just looking at the data here,” Waller says. “ Birmingham for example is up about 6% year over year and that is just continuing to go up.”
Waller recommends if you’re looking for a new home to rent, start as early as you can. Make calls, try to negotiate concessions in exchange for signing longer leases, and work connections you have around the community to find better deals.
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