Along with the cost of homes, rent prices have also increased. In fact, rents have increased nationally by 1.2% in the past year, according to apartmentlist.com. The Yardi Matrix National Multifamily Report shows that rents have increased by 3.3% ($47) year-over-year with national average rents at $1472. With homes out of reach for many, finding an affordable rental doesn't present too many options, either. Throw in a security deposit, the first and last months' rents, and the cost can be prohibitive for those seeking new apartments.
A trio of Portland OR credit unions want to help those who are finding it difficult to move into a new rental. These credit unions will provide a minimum of 150 security-deposit loans for Portland metro consumers. The group of credit unions will each commit $50,000 per year for two years. Funding will be provided in partnership with the Meyer Memorial Trust.
The security deposit loans will have a maximum interest rate of 5%. The loans aren't meant to be long-term. They are a bridge to help reduce the cost of moving into a new rental.
“You’ve got an individual or a household in a rental looking for their next rental, and potentially they have the security deposit from the existing rental coming to them after they leave, but they have to come up with a security deposit and first and last month’s rent to move into the next property,” Executive Director of Northwest Credit Union Foundation, Sharee Adkins, said to cujournal.com. “This just helps them with that bridge. Once they move into that next property, we envision them being able to pay that back.”
A similar fund has been created for Miami area consumers. The Community Development Fund, of which Power Financial CU in Pembroke Pines, Fla. was the first to invest, has generated more than $50 million for affordable housing efforts. The average rental price in Miami, as of July, was $1,700, up a whopping 6% from one year prior.