Ending deposits would open doors for low-income renters in North Carolina

We are in the midst of a housing crisis in North Carolina.

Over the last decade, rent costs have skyrocketed in our state, dramatically outpacing the national average, leaving many of our residents unsure of how they will afford a roof over their head. The pandemic has only exacerbated this problem, and there is significant concern about the impending end of eviction moratoriums. Once lifted, thousands of North Carolinians will be without the financial resources to quickly move into safe and secure housing. We need smart, common-sense policy solutions to make housing more accessible for our state and we need them now.

While major cities across the country have seen rent costs drop due to the pandemic, we have actually seen rent increase across our state. Of the 20 cities experiencing the highest rent increases since the pandemic began, two are in North Carolina. Over the course of the last year, Durham’s average rent has grown for a one-bedroom apartment by 39% and for a two-bedroom by 25%. As a result of these spikes in price, a majority of North Carolina’s low-income renters are spending more than half of their income on rent. North Carolina needs to take bold action to make a significant dent in the cost of renting for working families in this state.

The traditional cash security deposit required to rent an apartment effectively doubles the upfront cost of renting, which makes too many apartments inaccessible for families without significant savings to cover the cost. As it stands, four in 10 Americans don’t have the money available to deal with an emergency expense of $400, much less the rising costs of a typical security deposit. Nationwide, there is over $45 billion worth of security deposits sitting in escrow accounts.

North Carolina needs a common-sense policy approach that immediately expands the accessibility of housing for renters and turns the status quo of rent affordability on its head.

“Renter’s Choice” legislation is the answer to reducing the upfront costs of renting.

Under “Renter’s Choice,” rather than being forced to pay a burdensome upfront cash security deposit, renters can take out an insurance policy from companies such as Rhino that significantly lower the barriers to entry for renters. The policy allows individuals to rent without having to fork over hundreds or thousands of dollars up front, and contains numerous consumer protections that in many cases go above and beyond those offered by security deposits.

This legislation isn’t just a temporary fix during a difficult time, it’s a fundamental shift that will put stable and secure housing in reach for more North Carolinians. “Renter’s Choice” legislation is a shining example of a win-win solution that benefits renters and property owners alike.

While we wouldn’t be the first to introduce “Renter’s Choice,” we would join a growing movement already implemented by cities across the country, including Atlanta, and Cincinnati, to help our communities afford housing, invest in their futures, and ultimately continue the economic growth we’ll need to fully recover from the pandemic-induced recession.

This change would benefit our constituents—particularly those who need help the most—while protecting property owners and improving our economies. Our hope is that more of our colleagues, Gov. Roy Cooper, and major cities across the state see its enormous potential as a common-sense solution for North Carolina. “Renter’s Choice” is one step we can take now to address housing accessibility and affordability because our constituents can’t wait for comprehensive housing policies from Washington, D.C.

The onus is on us to act and introduce legislation like “Renter’s Choice” to provide real relief to our communities.

Dr. Ashton Clemmons is a Democrat, representing the 57th District in the North Carolina House of Representatives. Jay Chaudhuri is a Democrat, representing the 15th District in the North Carolina State Senate.