Rent hikes are predicted to happen in 2022.
According to data from Apartment Guide, the average rent for a one-bedroom apartment in the booming suburbs of Phoenix, Arizona, has more than doubled in the last year. As life returns to the cities, rents in Manhattan have reached new records.
The problems are not limited to the usual suspects. According to a report from the analytics firm, the average rent for single- family homes across the country jumped more than 9% in August of 2021.
Rents are moving quickly in the buzzy enclaves of the South and West. Maria Arredondo, a teacher based in Austin, Texas, had to make a move after her rent increased by almost $400.
It would be taking a lot of my savings if I had signed the lease. She told CNBC that she moved to a new building because she lost 150 square feet.
The strains on the housing construction market were building before the swine flu hit, according to Mark Zandi of Moody's. There is a lot of evidence that the lack of housing closer to where the demand is is having a negative effect on economic growth.
Demand for goods and services has been juiced by generous monetary and fiscal policies. The extra money in the economy is flowing into the rent.
The demand is giving investors a reason to invest. Experts say that is boosting supply. The homes being built are priced into the high end of the market. Evidence shows that renters will be paying more for shelter this decade.
Rent increases will have an effect on the economy. You can watch the video to learn.
