Low Rental Apartments, Essay Example

Why are high income renters occupying low rental apartments over low-income households?

It is surprising that some low-income families are forced to live in terrible conditions while others live on the street because they can’t afford any available housing. Poverty levels among the millions in America are in this scenario. The fall in house allowances has led to shortage of affordable apartments to the working poor. According to the principle of supply and demand, demand for rental units has soared upwards, with rigid credit standards and many families unable to gather enough for a deposit payment for buying a home. At the same time, supply has declined, with homebuilders and landlords often targeting the upper end of the market, leaving out the low earner incomers. This supply and demand is at no equilibrium leading to poor housing quality and services.

Basing on the economic principle of substitute, when home builders target the high earners for good homes, they automatically push the low-end earners to increase demand in low housing causing a shortage. With likelihood of no price controls from the government, the residents in low ends resist a rent increase on their own therefore pushing to poor housing quality with little or no maintenance from the landlords. For better housing therefore, it implies that poor Americans have to squeeze spending on other priorities. Because more and more people are looking for low costing apartments the price of apartments are increasing. This is attributed to scaling up of credit facilities and low income in the working group forcing them to source for cheaper apartments.

In conclusion, the government spending 100 million to help low-income families in the market for apartments in Washington should help increase apartments but it is a short-term solution. There’s need to empower the people economically to meet the demands and avoid price controls at any stage for the cartels know how to frustrate the economy in case of a price control call from the government.