Homework Question on Affordable Housing in the Current Economy
- IN THE NEWS Based on what you have learned this week, research a news story that addresses INCOME, POVERTY or HEALTHCARE. What has been happening lately? Why?
- Use the key word ECONOMIC NEWS in an Internet search engine (Google, Bing etc.) to locate online news sources such as CNN News, the NYTimes, Chicago Tribune, Fox News, Forbes, US News and World Report, or any of the various other nationally recognized news providers.
- NOTE: Make sure the story you select reflects the material covered in the chapter. This is best accomplished by using the ADVANCED SEARCH option and choosing appropriate categories such as “Business” or “Economics” when the option exists. Also, choose sort by “RELEVANCE” to further refine the search process.
- Select a news provider and use their search feature to locate a news story on one of the following suggested concepts, or on a topic of interest to you appropriate to this chapter.
- Possible search terms: ◦Education (as a means to upward mobility) ◦Training programs ◦Jobs programs ◦Poverty ◦Food stamps/WIC ◦Income inequality ◦National healthcare (“Obama Care”) ◦Wage gender cap
- Write a 3 to 5 paragraph summary of the information and also explain how it relates to what you have just learned. Do not copy and paste directly from the article except for small quotes that help explain your summary.
Homework Answer on Affordable Housing in the Current Economy
The cost of housing, like everything else in the current economy, keeps on rising. The cost of housing has especially risen in urban areas due to an increase in population, which has increased demand for housing (Barro, 2014). Expensive cities in the United States of America such as New York and California have very high rent rates. In the expensive cities, developers are required to set aside a few housing units that are charged at lower prices in comparison to main units that are rented out to clients.
Currently, some luxury units in Manhattan are going for a monthly rent rate of about $ 5,800. This amount is for a 2-bedroom house, which has one bathroom. Similar design two bedroom apartments with two bathrooms go for a monthly rate of about $ 8,600 (Barro, 2014). It seems exaggerated that an extra bathroom can cause the monthly rate to be that high. 20 % of the apartments in the building have been set aside as part of the “inclusionary housing” project; an initiative of the New York City affordable housing project.
In the same apartments in Manhattan, there are some apartments going for an average monthly rent of $ 780. This is over 85% discount on the monthly rent being asked of the 80 % tenants occupying the building. This lower rate is part of the New York City affordable housing project whereby individuals are chosen through a lottery. Developers volunteer to take part in the project because they are awarded 33% more feet in comparison to those developers that are not involved in the project.