17 July 2013

The REAL Effects of Inflation

Anchorage rental rates rise, but income doesn't 

ANCHORAGE - Ben Hankins was working on his Fairview duplex on Tuesday afternoon. He was replacing a door on the downstairs unit. He lives in the three bedroom unit upstairs, but he doesn't live there alone. Right now, he's looking for another roommate. For two years, he's done the same thing: posted an ad on Craigslist to find his next roommate. "I haven't really had a problem finding roommates," he said. "It seems like no matter what someone comes along." It's not just a coincidence. Hankins' ease in finding someone to live with reflects the very low vacancy rate in the city. He only charges $700 for someone to live in a furnished house. "I think it's a great deal," he said.

When you look around Anchorage, he's right. According to an article written in "Trends" by state economist Neal Fried, the average two bedroom will cost a renter over $1,200. Even if you can afford it, it's not easy to find one. That scarcity keeps costs on the rise, and the Anchorage Economic Development Corporation published a survey that said Anchorage incomes aren't keeping up. Bill Popp, CEO of ADEC [sic*], said, "We have household income in decline since 2008 by 8 percent. We have the average cost of a rental unit up 19 percent since 2008." He explained that squeeze is pushing up wages and making it harder for small businesses to hire workers. (my emphasis, added)

Read the rest here.

* Anchorage Economic Development Corporation (AEDC)


Old NFO said...

Not just there, pretty much everywhere... mid-grade 2BR here is $2400-2700 a month.

Rev. Paul said...

Okay, NFO, you win! Or lose, as the case may be.

PolyKahr said...

As one who survived the Carter years, I can tell you inflation is not fun. I was newly married, and we were looking to buy a house. But the housing prices seemed to escalate daily, while my income remained rock steady. I did dispare of ever putting together enough down payment to buy a house.

God bless,

Rev. Paul said...

PolyKahr, I remember those years far too well. Car loans were running around 18% interest, too. Wasn't fun at all.