Renters of Color Pay Higher Security Deposits and More Application FeesBy RISMedia Staff
The U.S. rental market is extremely competitive, with the national vacancy rate lower than it’s been in nearly 40 years. Rent prices are up a record 17% in just the past year. However, results from Zillow's Consumer Housing Trends Report show renters of color typically face greater barriers to securing a place to live than White renters do. Renters of color not only submit more applications—and pay more in application fees—they also typically pay a higher security deposit when they move in.
Key findings:
Potential resolutions: Expanding access to credit could help improve outcomes for Black and Latinx renters. Nearly half of White renters (46%) say they were certain they would qualify for a rental, compared to 38% of Latinx renters and 34% of Black renters. Credit checks are part of many rental applications, and Black and Latinx adults are more prone to being credit invisible and more often live in counties with higher levels of credit insecurity. The takeaway: "Rents grew more last year than any year on record, forcing many renters to look for a more affordable option. About 2 in 5 renters who moved in the past year said a rent hike influenced their decision to move," said Manny Garcia, population scientist at Zillow. "Renters typically do not have much of a financial cushion, and the cost of finding a new place to live can be an expensive burden. Regrettably, renters of color are especially likely to experience rising rents, and when they shop for a new rental, generally report higher upfront costs, restricting the mobility that is often held up as a benefit of renting." To read the full report, see: Consumer Housing Trends Report. |
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