Nationwide rent prices have increased significantly year-over-year. | Adobe Stock
Nationwide rent prices have increased significantly year-over-year. | Adobe Stock
Inflation pressures have consistently squeezed the wallets of the American people since early 2021, when Biden entered office.
Among the areas of rising price concerns is the cost of rent. On average, there’s been a massive rent increase of nearly 25% for one-bedroom rentals and a near 22% increase for two-bedroom rentals nationwide.
A global leader in property information, analytics and data-enabled solutions provider, CoreLogic, says that prices for single-family rents in the country rose to begin the year, jumping 12.6% year-over-year in January compared to 3.9% at the same time last year.
“Single-family rent growth extended its record-breaking price growth streak to 10 consecutive months in January,” said Molly Boesel, principal economist at CoreLogic. “Rents increased across the country, and the gains were highest in the Sun Belt, which also had strong population growth last year.”
Rent.com reported that rent prices in the country have gone up since last year with the median one-bedroom apartment going for $1,684, a 24.4% from 2021 and the median price for a two-bedroom apartment is $1,997, up 21.8% from 2021.
According to the website, the Michigan rent market has also gone up by an estimated 15.71%, however, the website noted that Arizona, Florida and Oklahoma have seen a roughly 50% rent surge.
According to a recent Fox Business article, rent prices are expected to continue to go up. "In a lot of places, it costs more money even to rent than it is to own a mortgage," Zillow economist Nicole Bachaud told the news outlet. Some Americans have had to seek shelter in other areas because they just can’t afford the rent increase.
Lawmakers in America’s largest metropolises are seeking to place rent-control policies that would only permit landlords to raise monthly rents by 2% to 10%, according to The Wall Street Journal. “Rents are exploding at a pace far faster than income,” Stijn Van Nieuwerburgh, an economist and professor at Columbia Business School, stated.
President Biden has an initiative to make housing available to people who spend over 30% of their income on rent by distributing Section 8 vouchers, with the notion that renters can save money in the process for down payment on a house, according to Fee Stories.
"One likely unintended result of this policy is that landlords will raise rents without the renter feeling the pain of the increase because the faceless taxpayer will pick up the difference," businessman Daniel Kowalski told the website.
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