Research shows financial burden facing majority of Alabama renters

IN WASHINGTON, I’M CHRISTOPHER CELIS. RESEARCH FROM THE UNIVERSITY OF ALABAMA FINDS JUST HOW MUCH OF A FINANCIAL IMPACT PAYING RENT IS FOR MOST PEOPLE IN THE STATE. IT SHOWS PEOPLE IN THE 12 LARGEST CITIES IN ALABAMA HAVE TO MAKE ABOVE THE MEDIAN HOUSEHOLD INCOME TO MAKE SURE RENT IS NOT A FINANCIAL BURDEN. THE MEDIAN INCOME IN THOSE METRO AREAS, A SHADE UNDER $57,000. SO ON AVERAGE, RESEARCH FINDS THAT ALABAMIANS NEED TO MAKE NEARLY $2,000 MORE TO AVOID RENT BEING THAT BURDEN, IN THE SIMPLEST OF TERMS, A HOUSEHOLD IN ALABAMA NEEDS TO MAKE RIGHT AT $59,000 A YEAR TO LIVE COMFORTABLY. SO WHAT DO WE MEAN WHEN WE SAY FINANCIAL BURDEN? THAT MEANS 30% OF SOMEONE’S MONTHLY INCOME GOES DIRECTLY TO PAYING ONE BILL. IN THIS CASE, WE’RE TALKING ABOUT RENT BY PAYING MORE FOR SHELTER, IT GIVES PEOPLE LESS MONEY TO SPEND ON OTHER NECESSITIES. IN MAY, THE AVERAGE RENT IN ALABAMA’S 12 LARGEST CITIES WAS ABOUT $1,400. THAT’S ABOUT THE AVERAGE RENT RIGHT HERE IN BIRMINGHAM. SO LET’S BREAK THIS DOWN A LITTLE BIT FURTHER FOR YOU IN THE LAST YEAR, RENT INCREASED NEARLY 6% IN THE BIRMINGHAM METRO. AND TO MAKE SURE THAT YOU’RE NOT FINANCIALLY BURDENED, A HOUSEHOLD NEEDS TO MAKE $58,000 A YEAR IN TUSCALOOSA, IT’S EVEN HIGHER. ALL RIGHT. SO WHAT’S THE CAUSE OF ALL THIS? THE PANDEMIC, DEFINITELY PLAYING A ROLE IN THINGS. ANOTHER FACTOR, WAGES JUST AREN’T KEEPING UP WITH THE INCREASED PRICE OF RENT. SO WHAT CAN BE DONE TO REVERSE THE TREND? RESEARCHERS AT UA SAY MORE RENTAL SPACES NEED TO BE BUILT IF WAGES AREN’T GOING UP. THE BELIEF IS IF THERE’S MORE