AIN'T NOTHING GOING ON BUT THE RENT

Almost a decade ago--1986, to be exact-- the late singer Gwen Guthrie dropped her album, "Good To Go Lover." While she either wrote or sang for a number of artists who'd go on to claim fame--including Aretha Franklin, Stevie Wonder, Madonna, Ben E. King, Angela Bofill and Roberta Flack-- Guthrie herself would never gather a renown consistent with her prowess as a pianist and vocalist.

Still, one of the songs on that "Good To Go Lover" album --and the one for which she's most famous for-- is, "Ain't Nothing Going On But The Rent." It's a sober tale about how the struggle to keep up with "those bills" can be exhausting and inconducive to a flourishing relationship; it's a story about how central a role good paying jobs can play in enabling partnerships to thrive and, conversely, about how the lack of employment tears away at the thread running through any bond; it's a narrative about how the singer's desire is to not to embark on a journey that commences--and likely concludes-- with her carrying all the weight. Guthrie got jumped for being "materialistic" but, in reality, her song also pointed to an undeniable fact for many who labor under capitalism: Far too many working class folk earn wages that make it difficult for them to comfortably meet their basic needs, including the need for shelter. Things are easier when both partners are positioned to throw down on the monthly bills. Finance helps romance. It takes two.

Ain't nothing going on but the rent.

RISING RENT IS DRIVING THE INCREASE IN CORE INFLATION

36% of the nation's 122.8 million are renters and, undoubtedly, they can feel it in their bones when Gwen Guthrie--or someone else-- utters or sings the words, "Ain't nothing going on but the rent." According to one study, between 1985 and 2020, the national median rent skyrocketed by 149%. And, just in case you're wondering, during that same time period overall median household income grew by 35%. Since 1985, in other words, median rent has increased more than four times as fast as median income.

Yet another study notes that the asking median rent price broke the $2,000 ceiling in May, 2022. That's a 15 percent increase over May of 2021 and is indicative of the growing pressure that renters find themselves trying to bear up under.

And then, of course, there's the Bureau of Labor Statistics' most recent monthly report on inflation. According to the Bureau of Labor Statistics, the average price level jumped 1 percent during the month of May 2022. That's up from the .3 percent rise recorded in April and, says the BLS, we're now looking at an annualized inflation rate of 8.6%. You've undoubtedly heard about that 8.6 number, and you should. After all, an annualized rate of 8.6% is the highest recorded since 1981, and it exceeds the 8.3% that many professional economists had predicted.

What you haven't heard much about, if anything at all, is this: rising rent is playing a significant role in jacking up the nation's core inflation rate. The core rate excludes energy and food from its calculation on the premise that price movements of these goods are too volatile or "noisy" and, therefore, less likely to accurately capture the basic, core, or underlying trend in the economy's aggregate price level. During the month of May 2022, the core inflation rate increased .6 percent. .24 of that increase was attributable to a rise in rents.

Long story short: Rising rent was responsible for 40 percent (.24/.6) of May's 2022 jump in the core inflation rate. Or, as Gwen Guthrie put it:

Ain't nothing going on but the rent.

WHO'S GOING TO TAKE THE WEIGHT?

So, just how serious of a problem is this? Well, for one, a 2020 study by the Government Accountability Office (GA0) estimates that every $100 increase in the median rent results in a 9% increase in homelessness. What's more, a recent Census Bureau survey finds that 8.8 million persons were behind on their rent between April 27th and May 9th of this year, with almost a third being at least three months in arrears. Furthermore, a study conducted by the Pew Research Center provides insight into the demographics of renters in the United States:

• Almost 6 out of every ten (58%) households headed by African-Americans rent their homes, compared to 27% of White households

• Two-thirds of younger people--that is, those below the age of 35-- reside in rentals, compared, for instance, to less than a third of those aged 45-54.

Thus, Black and younger households are particularly likely to be impacted by rental increases.

But it doesn't end there. The Federal Reserve's 2019 Survey of Consumer Finances (SCF) confirms something that many already know but, nevertheless, merits highlighting: The least wealthy households are more likely to be renters than homeowners. More specifically, the Fed finds that over 60% of people in the lowest income quartile rent their homes, compared to, say, only 10.5% in the highest income quartile. And, not surprisingly, the Fed study finds that almost 90% of people with net worth below the 25th percentile are renters. That percentage drops precipitously as one moves up the scale of net worth. In short, those who rent are skewed toward the less well-off economically, and that's true, of course, whether economic well-being is measured in terms of income or wealth.

And, lest we forget or choose to ignore it, the Williams Institute report that LGBT persons are more likely than non-LGBT persons to be renters and, therefore, particularly vulnerable to evictions that sometimes eventuate as a result of increased rents. The Institute, by the way, finds that non-White LGBT persons are especially at risk as a result of increased rents and heightened evictions.

Left to its own, then, rising rents will have its greatest impact on the lives of the poor, the less wealthy, the younger, Blacks people, and LGBT folks. They're among the primary ones taking--and who will continue to take-- the weight of the skyrocketing rents contributing to elevated levels of core inflation.

SHORT AND LONG-TERM RESPONSE

We need both a short and long term response to skyrocketing rents and the economic and human damage that often comes in its wake. Short-term, and as economist J.W. Mason argues, we need a mix of policies that include, for instance, public investment in housing, limits on rent increases, and subsidies to tenants.

Long-term, progressives need to marshal all their energy to continue fighting and organizing for the realization of a political economy grounded in the respect for, promotion, and protection of human rights. Included amongst those rights is the right to safe, stable, and affordable housing. We must boldly and publicly name the right to housing as a fundamental human right. We must do this out of a sense of justice because Gwen Guthrie's lyrics ring true for far too many people:

Ain't nothing going on but the rent.

Catch you on the flip side,

Doc Greene