Is there trouble on the horizon in Glendale, CA? One of the most important measures of whether people can afford life as a whole is housing costs as a percentage of income. It’s pretty straightforward – the actual dollar cost of what you spend on housing means nothing in a vacuum. What’s important is how much of your income you’re spending on housing. That number has been creeping higher on a national basis, and there is some additional concern in Glendale.
Most Americans can’t afford a $5,000 emergency. That’s common knowledge. What may not be common knowledge is that most Americans can’t afford a one thousand dollar emergency expense. CNN pointed that out back in 2011, and it certainly hasn’t improved in recent years. According to their research, sixty-four percent of Americans don’t have $1,000 cash on hand. That’s what makes higher housing costs as a percentage of income in Glendale so concerning, because all it takes is one delayed paycheck to send the whole house of cards crashing down for more and more American families.
With a population of 200,000 as of the last census, Glendale is a large enough city to have an economy that functions as an important part of the local economy, but small enough that the city economy is still subject to the swings of the national economy. Only 37.4% of Glendale residents own their homes, and that’s a sharp drop from the statewide average of 55.3%. Unfortunately, one of the reasons for that is that the median value of owner-occupied housing is over half a million dollars, nearly two hundred thousand dollars more than the California average. With 71,000 households, there are about 45,000 renters in Glendale.
We’re less concerned about housing costs as a percentage of income for homeowners – at this point in the economic recovery, the vast majority of people who were going to be foreclosed on are already in the process. The 45,000 renters, on the other hand, may be in serious trouble. The median income is $53,020, nearly ten thousand dollars per year less than the statewide median.
More and more apartment communities are expecting residents to make four times the annual rent. Based on a median gross rent of $1,288, that means that the median income is insufficient for a family to rent an apartment in Glendale. The annual median rent is $15,456. Four times that is $61,824 which is already problematic for families. Even at the older multipler of three times household income, families are still barely hanging on – that would be $46,368. That older multiplier assumes accurate budgeting, no unexpected expenses, and an emergency fund sufficient to live for a month or two if the worst happens.
Things get worse from there. While hard numbers are difficult at best to come by, the people who are on the higher end of the income scale own their homes. That drives down the median household income of renters in Glendale and makes it even more difficult for them to afford housing. When most families have no emergency funds, and most families have no prospects for substantial increases in income, more people are getting further and further behind.
While it’s not a substitute for an emergency fund, Glendale residents can manage the risk of emergency expenses with a Glendale, CA Renters Insurance. Losses such as theft and fire are covered, as are additional living expenses arising out of such a loss. That helps a family to keep from getting even further behind in a crisis, and allows them to recover quickly. Without emergency funds or renters insurance in Glendale, families don’t have a place to go after a loss or a way to get the things they need like clothes for work. That can result in job loss, reduced income, time off from work, and other significant barriers to recovery.
To find out just how affordable it can be to protect your family, just call (800)892-4308 or click to get covered - whether you need Glendale renters insurance quotes online or coverage anywhere else!
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