“This is a bubble and it can’t go on forever. The arithmetic doesn’t work. This is a system that is going to break.”
Spiking Rents Threaten New Real Estate Bubble That’s Hardest on the Poor
This was nuts. Lisa Miller’s rent was jumping a third this summer, to $600 from $450 — more than she could possibly bear.
What the Kansas City home caregiver didn’t know was that the whole central city has been going nuts. But she was about to find out.
Miller stepped into an alarming rental “bubble” that is rising over the Kansas City metro area, in both apartments and houses.
Rents have been rising at an accelerated rate over the past year — by double-digit percentages in some poorer ZIP codes — even though household incomes and developers’ costs have remained flat with inflation.
“This is a bubble and it can’t go on forever,” said Kirk McClure, a professor of urban planning at the University of Kansas. “The arithmetic doesn’t work. This is a system that is going to break.”
The rising rents strain many household budgets, but they are brutalizing families and individuals earning lower incomes.