Just when South Carolina motorists were starting to breathe a collective sigh of relief, various issues throughout the country and across the world have caused people to cringe again whenever they approach a fuel pump. While costs vary from state to state, most drivers say that their wallets have taken a recent hit. Rising gas prices are once again a topic of discussion online, at the dinner table and in the workplace.
What many people may not realize, however, is that rising gas prices have had a significant impact on the US housing market. Recently published data from AAA cites that the average price for a gallon of gas throughout the country is $4 per gallon. Increased energy costs have a ripple effect across many sectors, including affordable housing.
Rising gas prices have triggered a crisis for low-income rentals
The term “affordable housing” basically refers to homes that cost less than 30% of a household’s gross income. This includes utilities. The National Income Housing Coalition has stated that there are at least 11 million low-income households in the US. The Coalition has further stated that rising gas prices and energy crises have triggered a substantial deficit in the affordable housing supply, which places low-income households at risk.
Rising gas prices present challenges for home building companies. Everything from powering equipment to transporting materials and workers, etc., costs more. This unfortunately means less affordable housing units due to the financial strain such companies are facing today.
Buying versus renting
In many counties throughout the US, buying a home may be more economically feasible in the long run than renting. While renting may seem more practical for lower income households, this is often a short-term outlook. Buying a home can create long-term stability, especially with a fixed mortgage; there’s no risk of rent increase.
Owing a home is an asset, and homeowners acquire “forced” savings due to equity. Prospective buyers must remember, however, that maintenance and upkeep become the responsibility of the homeowner. In a rental, this is the landlord’s responsibility. If rising gas prices have you concerned about whether to rent or buy a home, it’s helpful to speak with an experienced real estate agent, who can provide resources and information regarding the housing market in a specific South Carolina region.