Thursday, August 11, 2022

Rising rents driving millions of Americans out of their homes


Stefan Hans
Stefan is a german based freelance content writer. He mainly writes on Political and Research-based stories.

Home rental prices in the United States have been rising for months, but recently the rise has become larger and more widespread, forcing millions of Americans to reassess their living situation.

Rents rose 14 percent last year, to $1,877 a month, and in some cities such as Miami, Austin, and New York the rate was as high as 40 percent, according to real estate firm Redfin.

Americans expect rental prices to continue to rise, by 10% this year, according to a report issued this month by the Federal Reserve Bank of New York. Meanwhile, many of the local rent freezes and eviction moratoriums have already ended.

Rents have gone up in the second half of 2021, and the pandemic was a kind of pause in the economy, said Daryl Fairweizer, an economist at Redfin.

Higher rental rates are expected to be a major cause of inflation in the US in the coming months. Housing costs account for about a third of the US Consumer Price Index, which is calculated on the basis of a continuous rate of home rents. However, economists say there is a gap of nine to 12 months before higher rents manifest themselves in inflationary measures.

As a result, even if inflation declines relative to all other components of the CPI, higher enforcement can keep inflation levels high during the year.

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