High Rent Rate in Washington DC
The rents of the apartments across the country have been rising at the fastest pace in almost two years. In compare to other cities, it is reported that the range in Washington area are rising slowly. The Washington market is reported with the flood of choices for the renters that keep a lid on the extent to which the rents can rise. The calculation shows that the median rent has risen up to 2.8% in the last year (Landis, 2010). It can be interpreted that the higher demand of the rental houses in Washington DC if one of the probable reasons for such high rent rates. Currently, Washington DC is one of the most expensive places among all other cities in United States. The report is focusing on identifying the main causes of such high rents in Washington. This report will also highlight the probable solutions in terms of dealing with such high rent rates in the city. A complete understanding of the opportunistic scenario as well as the challenges will strengthen the knowledgeable aspect of the subject area. THIS IS A SAMPLE ORDER YOUR PAPER NOW
Reasons for High Rent Rates in Washington DC
Washington DC has become one of the most expensive places to live all across the United States. There are numerous factors contributing towards such high rates of the apartment in this city. Fields and Uffer (2016) explained that the city offers a variety of Apartments that are quite attractive to the sophisticated individuals in America. Moreover, it has been observed that the numerous job opportunities in the City are striving opportunities for developing urbanized lifestyle. supporting such statement, Collinson, (2011) mentioned that the high demand for the houses having the surrounding of Washington DC results the increasing rental prices in this area. This perception can be explained by mentioning the law of supply and demand that ensures the high demand of a service or good results the charges for it. Favilukis, Ludvigson and Van Nieuwerburgh (2017) argued that the larger supply of the goods or service does not ensure much demand due to which the prices tend to fall. In many of the cases the facility providers try to resolve the problem with interest with justice by increasing the rates of the rent.
The idea received from the article, Rethinking Federal Housing Policy, indicates that the repeated changing living standards and economic status of American citizens have been creating the considerable impact on the day to day activities. This impact is leading towards high renting rates, especially in Washington DC. Katharine (2013) presented a contradictory view on this statement by stating that the government policies on the house rents ought to be regulated to reach to the economic level that is developing the high living standards of the American citizen. The article also depicts that the individuals have been facing considerable challenges due to such increasing price of the house rent (Walter, Evans & Atherwood, 2016). In fact, it is also stated that the city offers good quality houses that require incorporation of the high rate personnel. However, it is essential to pay attention towards the available materials for building components. Mishel, Bernstein and Schmitt (2016) presented a contradictory view in such context. It is said that the quality standards are needed to be increased in terms of ensuring safety of the tenants when they intend to buy the house.
Another probable reason for increasing rent rates in Washington DC is due to the good security. The place is quite secure from terrorist and other danger like wild animals. In fact, it is reported that due to numerous Police stations and security systems available in this area, the place is considered as the most secure place. This high security level has been attracting many tenants due to which the rent prices are increasing much considerably. Kneebone and Nadeau, (2015) opined that Washington DC is a place where some of the good infrastructure and well improved roads and transport system are observable. People tend to leave in a area, which is quite convenient for them to travel to their job places quite easily. Moreover, as stated by Howenstine (2017), the high level of communication line in Washington DC is quite famous all across USA. This communicational opportunity makes the residents demand for housing in this area (Npr.org, 2014). These are the specific causes due to which the rent of the houses is continuously increasing in Washington DC.
Challenges Faced Due to the High Rent Rates in Washington DC
In spite of these advantages in purchasing houses in Washington DC, the increasing rent rates have been creating the considerable challenges to the people. (Fields and Uffer (2016) suggested that the increasing rate of the housing rents is becoming unaffordable to the tenants. High rent fees often lack to raise the rental fees. People then tend to leave the premises and find more affordable premises for their living. It creates the negative impact on the facility providers as they might not create much profit in this business. It is also noticed that the government policies and regulations are also the considerable reasons for the continuous increasing rate of the housing rent in this area (Walter, Evans & Atherwood, 2016). These government rules and regulations are excluding the average people to bear the burden of Highlands whereas people from high income group can easily afford it. The government implies that it is necessary to keep the prices higher due to the extra securities provided to the people who are purchasing houses in these areas. In such cases, people from middle and low income group cannot afford such high security, which is suggesting much challenge in such segment.
On the other hand, Sturtevant (2012) implied that these government rules and regulations hinder the exploration of the innovative opportunities in the market. Due to the excessive high prices of the houses, the entrepreneurs are selecting the different field for their investment purposes. They simply avoid the place and try to venture their business in different location. This consequence is leading towards a considerable decline in the house numbers available in the Washington DC. Desmond (2018) contradicted this view by arguing that the investors often seek the good returns on their ventures due to which they need to set their premises in location, which is highly valued by the customers. Therefore, they are more likely purchasing the houses in this area. In another article, the issue is divided into two aspects. First, it is stated that the houses are rented in this area for the economic benefits. The rented house can be transformed into offices for encouraging the economic activities in the area. Hertog (2016) mentioned that the benefits derived from the better infrastructure create the economic advantages to the people. On the other hand, the people who are economically thwarted may face significant challenges in renting the house or introducing any business (Walter, Evans & Atherwood, 2016). It is noticeable that a high number of poor people have been living in the streets of New York and Washington DC. It is sometimes attributed to low economic standard. Hence, the issues with the unaffordable prices persist in case of economically backward people in terms of renting the house in Washington DC. THIS IS A SAMPLE ORDER YOUR PAPER NOW
Solutions for such high rent rate in Washington DC
The analysis of the challenges face due to the high range in Washington DC reflects that the region is becoming the victim of its own success when there is a question of housing affordability. It is true that the strong and steady economic growth in this region create the high demand for housing for the entrepreneurs. However, the repeatedly increasing rate of the housing rent is creating the considerable challenges with income spectrum. In addition to this, the difficult regulatory environment at the state, local, and Federal levels are creating the negative impact due to the emergence of fear in growing and changing the current residence. In order to mitigate the challenges, it is important to rethink the planning, zoning, an application process. It is important to create a master plan to ensure the development of the neighborhood by allowing higher density, mixed uses, and transit infrastructure. Desmond (2018) suggested that the local government requires reviewing and revising the ordinances associated with the zone for providing more flexibility in terms of structuring the housing prices in this region.
Another implication can be provided in such context. Kneebone and Nadeau (2015) stated that there should be the coordination exists in the political fragmentation of the region. The coordination from the region can ensure the high quality of life in these Metro areas. It includes all groups from the different level of economic zone and creates the opportunity to afford the houses in these areas. The collaboration of local governments, businesses, and affordable housing advocates will be much helpful in mitigating the challenges and create opportunities for the ordinary people in terms of purchasing the houses. In addition to this, the local leaders need to discuss the regional issues with the Metropolitan Washington Council of Government to keep the policy concerns transparent to the public. These implications would be much helpful in terms of resolving the issues with the high pricing structure of the houses in Washington DC.
The study observes the issues with the increasing rent rate in Washington DC. The analysis of the various articles highlights that the growing opportunities, transport facilities, greater infrastructure, and high level securities are the major reasons for increasing prices of the housing in this region. In addition to this, the government is also inclined towards developing more securities for the people due to which the prices of the houses are increasing higher. The place is quite secure from terrorist and other danger like wild animals. In fact, it is reported that due to numerous Police stations and security systems available in this area, the place is considered as the most secure place. The government implies that it is necessary to keep the prices higher due to the extra securities provided to the people who are purchasing houses in these areas.
Due to such high rate of the houses, people from middle income group are unable to afford the houses. Even, the entrepreneurs shift their preferences to purchase the office premises in somewhere else with lower housing rate. It creates the hindrances in exploring innovative ideas that might affect the economic parameter of the country. Therefore, it can be suggested that the government need to review the policy and make the flexible approach to engage different buyers from diverse economic background. The collaboration of the local leaders with the government will also be helpful in mitigating the challenges much preferably.
Collinson, R.(2011). Rental housing affordability dynamics, 1990–2009. Cityscape journal 13(2), 71–103.
Desmond, M. (2018). Heavy is the house: rent burden among the American urban poor. International Journal of Urban and Regional Research, 42(1), 160-170.
Favilukis, J., Ludvigson, S. C., & Van Nieuwerburgh, S. (2017). The macroeconomic effects of housing wealth, housing finance, and limited risk sharing in general equilibrium. Journal of Political Economy, 125(1), 140-223.
Fields, D., & Uffer, S. (2016). The financialisation of rental housing: A comparative analysis of New York City and Berlin. Urban Studies, 53(7), 1486-1502.
Hertog, S. (2016). Rent distribution, labour markets and development in high rent countries.
Howenstine, E. J. (2017). Housing Vouchers: A Comparative International Analysis. Routledge.
Katharine, L.(2013). Local Economic Effects of Public Housing in the United States, 1940–1970. Journal of Economic History, 73(1), 2978–1016.
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Mishel, L., Bernstein, J., & Schmitt, J. (2016). The state of working America: 1992-93. Routledge.
Npr.org, (2014). 8 Reasons Why the Rent is Too Damn High. Available from https://www.npr.org/sections/codeswitch/2014/01/06/260282186/eight-reasons-why-the-rent-is-too-damn-high Accessed on 27 May 2018.
Sturtevant, L. (2012). How do we solve the housing affordability crisis?. Available from https://ggwash.org/view/29749/how-do-we-solve-the-housing-affordability-crisis Accessed on 27 May 2018.
Walter, R., Evans, A., & Atherwood, S. (2016). Addressing the affordable housing crisis for vulnerable renters: Insights from Broward County on an affordable housing acquisition tool. Housing Policy Debate, 26(1), 123-149.