Income Growth Stalled By Rental Increases

Author:	Lucas Jones
Source:	Homes Discovered
Date:	December 14, 2006

The cost of renting these days is rising much quicker than the growth in wages for those who need it the most in Birmingham.  Housing affordability is at a low point now, since the realty market is slow, rental properties figure they can raise rents because most people aren't buying homes.  People will be forced to pay the additional rent because buying a home is just out of reach. Housing is least affordable among minimum wage earners even in states with a higher minimum wage than the federal rate.  This is not surprising because wages have largely been stagnant yet housing prices continue to rise.  Every year it is becoming more difficult for low and moderate-income people to afford housing.  Hopefully things start to change soon The job forecast for the new year looks steady yet cautious.  Employment will remain stable and many employers will be looking to  add to their payrolls. Tech jobs will be the strongest while construction and finance jobs will do the worst.

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