Inflation Is the Cause of Continuously Rising Rent
Inflation is a constant economic problem that throughout the years affects everyone in the city and everywhere else. Inequality is also a huge problem that manifests itself within this problem, because just like rent is rising everywhere across the entire country, they should as well rise the monthly income wages for workers. Society definitely hopes for there to be a balance between raising wage and inflation. And not for inflation to overpass wages. Even though unfortunately it already has happened.
This problem is becoming a serious challenge for many residents just to earn enough to pay for the rent that is due every single month. It’s incredibly shocking that the city is rising the amount of the rent by tremendous amounts. On the other side, in fact, for the wages amount, they only raised it by about 40 cents this year of 2023.
They don’t even raise it an entire dollar per year. Also, it is a reality that the value of the dollar keeps decreasing every single year and it is not worth the same anymore as it used to back then. This is why everything keeps increasing and why everything is becoming more expensive as time goes on.
The Increase Amount of Rent in the City of Chicago
Currently in the United States, rent prices are raising year by year. This is because landlord taxes are also raising and which is why they need to raise rent. In fact, back then in 1985, the prices used to be significantly lower than nowadays. Now the statistics show that from 1985 to 2020, prices have increased a surprising amount by 149%. On the other side, monthly income has risen up to 35% from 1985 to 2020.
Overall, it’s been proven that rent is increasing four times faster than income since 1985. Also, 58% of renters are living paycheck to paycheck because wages are not able to keep up with rising prices. Basically, inflation is making it more difficult for the society to catch up with all the debts and even to save up some of the income.
Renting Experiences of Community Members
Most people in the city of Chicago and mostly everywhere rent for the sole reason that it is more sustainable and more accessible than buying an entire home. Even though buying a home in America is the American Dream for a lot of people. However, the effect of inflation is making effect in all communities. It is also for sure taking a toll on many people because it is becoming harder each time to pay for rent.
This is the case of Maria Garcia. She is struggling to pay for her rent each month. Ms. Garcia is in a low income and low resource family. She has to reach out for public assistance for the reason that rent is raising and she still has to raise her children. Ms. Garcia is a single mom, and this is the case of a lot of the individuals of Little Village. Even if they are a whole family or not, a lot of parents of families are struggling to catch up on rent, debts, bills, etc. The rent booming is making an impact in communities of Chicago, and it’s not looking so good.
Written by Jeanette Sanchez
Sources:
Forbes: The Average Rent In Chicago Reaches Its Highest Point Ever
Hurriyet Daily News: Demand for rental housing rising fast
Interview: Maria Garcia and other community members; July 2, 2023
Loop North News: Wages are not rising fast enough for many Chicago renters. Head to the suburbs, right? In some Chicago suburbs, rents are actually more expensive.
NBC News: Rent Booming in Chicago, Up 11% in 5 months
Real Estate Witch: U.S. Rent Price Are Rising 4x Faster Than Income (2022 Data)
Featured Image Courtesy of Mike Linksvayer Flickr Page – Creative Commons License
Inset Images Courtesy of Alan Light and Eric Allix Rogers Flickr Pages – Creative Commons License
