By now, most of us are aware that renting out a home or apartment is not a new concept.
In fact, the practice has been in place since at least the mid-1800s.
However, it has become a major problem for some renters.
According to the Bureau of Labor Statistics, rental units in the U.S. have been on the decline for the past several years, and the trend has been exacerbated by the housing crisis.
According the Bureau, renters are paying an average of $9,600 more per year than they did just a decade ago, and they are still stuck with an average rent that is nearly three times higher than they paid before the recession.
“This trend has accelerated dramatically since 2008,” said Brian Fagan, a senior economist at the BLS.
“In the last five years, the rate of increase in renters’ rent has outpaced that of the overall economy.”
The problem is especially bad for people who were unable to save for their own retirement and had no other options.
“A lot of these people are looking for a place to live that has the best possible amenities, that they can rely on for basic necessities,” Fagan said.
In other words, they want to keep living in a place where they can retire, work or take care of their kids.
“It’s a situation where you need to have a reasonable income to be able to afford a mortgage, and that income is not sufficient to make that investment,” Fagger said.
“If you can’t afford that, then you’re stuck.”
What does this mean for you?
If you’re renting out your home, you might want to reconsider it.
There are a number of ways to lower your rent.
You can rent from your own home, a nonprofit or even a government agency.
If you are a nonprofit, there is a chance that your agency may provide assistance to help you find a better place to rent, Fagan says.
“You’re basically looking for the lowest-cost place to go for rent that they might be able for you to rent from,” he said.
Other things you can do to lower the rent include applying for a discount on your mortgage or a home-improvement loan.
“But the bottom line is that if you’re a tenant who can’t make ends meet, you should definitely consider whether it makes sense to rent your place out or to rent directly from a landlord,” Fager said.
If all else fails, you can try to find a cheaper place to stay.
You might find a home in an apartment building or a condominium, but you can also rent out a room or two, Faganson said.
You also can find other ways to save money.
You may be able save money on your utilities, rent insurance, or even rent out the room or a portion of the space.
And you can rent a home to people who are working, too.
Fagan points out that the most important thing to remember about the housing market is that it is temporary.
“The real estate market is not fixed.
It is not in perpetuity.
So, if you are looking to rent a house, you really need to consider how much you can save, and what the risk is, in order to make the decision,” he says.