People of color have yet another stressor to worry about as inflation rages on: more upfront renting costs for housing.
A report by Zillow on consumer housing trends that was released April 6 states that the typical Black, Latinx and Asian American Pacific Islander (AAPI) renter reported spending $50 per rental application while white renters reported paying $35. Black and Latinx renters also reported submitting five applications or more before securing a rental. This
“Monthly rent prices are nearly the highest they’ve ever been, and unfortunately for so many people, finding a place to rent comes at an even higher cost,” said Manny Garcia, a population scientist at Zillow per a news release. “We so often hear about the benefits of renting and the flexibility it offers, but disparities persist, and many renters of color aren’t granted the same mobility as others because of higher upfront costs.”
The additional fees are exacerbating already worrying financial situation for many Americans.
As ESSENCE previously reported, the average year-over-year increase in rent was 5.77% nationwide, with the biggest increase occurring from 2021 to 2022 at 14.07% according to Credit Karma. According to the outlet, the average rent of a one-bedroom apartment increased from $941 in January 2021 to $1,169 in June of 2022, and the average rent of a two-bedroom apartment rose from $1,078 to $1,339.
Application fees aren’t the only headache renters of color are disproportionately being embattled by. According to Zillow’s report, renters of color are more likely to report paying a more expensive security deposit: 39% of Latinx and 43% of AAPI renters paid at least $500 for their deposit, and 22% of Latinx and 30% of AAPI renters paid at least $1,000.
The full report can be found here.