A Harvard study has found that those making $45,000 per year are struggling to meet the increasing cost of rent in cities across the country.
While low-income renters already face the tough task of affording rent and their basic needs, a growing number of renters in the middle-class are facing similar difficulties. Martha C. White reports on NBCNews.com that a new study by Harvard University has found that many renters who should be able to afford higher rents, pay for basic needs and save for retirement are now facing setbacks.
This situation is the result of a perfect storm of growing rental demand, especially from wealthier families, a shrinking pool of moderately-priced rentals and stagnant wages that haven't kept up with rent inflation, which is rising faster today than it has in 30 years.
The report notes that once the high-end rental market becomes saturated, more affordable units will likely become available, but until that time the middle class will continue to spend more on housing and less on other discretionary items.
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