Half of people with full-time jobs making less than $33 an hour cannot afford a studio apartment.
There was a sharp decline in Rental Fee It is slowing down, suggesting that high inflation may continue for some time to come.
new report Rents fell for the 10th consecutive month in May, with asking prices down about $13, or 0.7%, compared with the same period last year, according to data released by Realtor.com.
However, this represents a slight increase from April. The average asking price in May was $1,732, up about $10 from the previous month, suggesting rental cost increases are stagnating.
Do you have kids? I’m looking forward to buying a house this year.
A “For Rent” sign is displayed in front of a home on Dec. 12, 2023 in Miami, Florida. (Joe Raedl/Getty Images/Getty Images)
In fact, the report found that median rent prices were just $24 lower than their peak in August 2022. Notably, asking prices are still $306 higher than the same period in 2019, before the pandemic began.
Rents have been driving inflation for months. Pandemic LockdownPent-up demand and record high home prices have caused costs to soar, and the slowdown indicates “inflation is likely to continue,” according to Realtor.com.
“This slowing trend could impede further improvement in overall inflation and increase longer-term uncertainty, highlighting the continued need for additional housing construction to alleviate supply shortages that are contributing to rising costs,” the report said.
Rising home insurance costs could force families to move from 10 states
Rising rents are a concern because of the direct and serious impact that rising housing costs have. Household financesAccording to Census Bureau data, about 34% of households live in rented housing, but that figure is even higher for low- and moderate-income households: More than half of households with household incomes below the national median of $31,133 live in rented housing, about 52.6%.
A “For Rent” sign in front of a building on Dec. 6, 2022, in Miami Beach, Florida. (Joe Raedl/Getty Images/Getty Images)
Generally, households spend about 7% of their annual expenses on rent, but households without college degrees spent almost 10% of their total expenses on rent in 2020.
There are several reasons why rents are rising, including rising prices leading to increased demand and Mortgage interest rates Many would-be homebuyers have been shut out of the housing market. Lack of inventory and a demand for more space due to the pandemic are also reasons for the increase. According to CoreLogic, rents for single-family homes rose 14% in 2022.
Click here to get FOX Business on the go
But there are some signs that rent inflation is easing rapidly in certain parts of the country.
The steepest rent declines were in the South and West, with Austin, Texas (-9.3%), Nashville, Tennessee (-8.3%), and San Antonio, Texas (-8.2%) seeing the biggest rent declines due to an influx of new housing supply.
But some parts of the Midwest saw rental prices soar last month, with the biggest increases in Indianapolis (4.4%), Milwaukee (4.3%) and Minneapolis (2.9%).
