Newsfeed: These Are The American Cities Where Rents Rose The Most

By Tyler Durden

Amid a historic stretch of inflation over the last year, the cost of housing (especially rent) has been one of the most significant pressures on household finances.

Renters in many markets are seeing increases of 20% or more as they sign new leases, and, with the nationwide rental vacancy rate at just 5.6%, renters have few alternatives to find more affordable housing.

The current state of the rental market is a product of both supply and demand, with issues compiling over time and being exacerbated since the pandemic began.

Source: Stessa

On the supply side, the US has an estimated shortage of nearly 4 million housing units. Zoning and density restrictions have made it more difficult to add housing stock in many locations, both for rentals and owner-occupied units.

With rising real estate prices, 70% of the growth of the rental market since 2009 has come from higher-income earners who might otherwise have bought a home.

Source: Stessa

And as more high earners enter or stay in the rental market, builders and developers are incentivized to provide more luxury units, which means less new stock to meet the needs of low- and middle-income earners.

Source: Stessa

The pandemic-era economy has made all of these issues worse.

Meanwhile, these are the small and midsize cities where rents have risen the most (and the least).

The spike in home values and rising interest rates are putting homeownership further out of reach for many would-be buyers, keeping more people in the rental market.

Builders and developers are also struggling to keep up with heightened demand while managing costs. Ongoing supply chain challenges have made it more time-consuming and expensive to obtain building materials, while the tight labor market has left hundreds of thousands of construction positions unfilled.

  

More From The Real Estate Guys

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Subscribe

Broadcasting since 1997 with over 600 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

 

 

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

SIGN UP FOR OUR FREE NEWSLETTER

Explore The Archives

Archives
Metal Ask Change
Gold $1866.54 $8.85
Silver $22.19 $0.27
Platinum $968.79 $-0.66
Palladium $2055.38 $17.99
Gold to Silver 84.12 to 1
Gold to Platinum 1.93 to 1
Gold to Palladium 0.91 to 1

The Real Estate Guys™ Guests and Contributors Have Been Featured On: