The recent real estate boom, fueled by unprecedented house price surges, means that Americans are renting more houses than ever before and are willing to rent at prices above market value.
According to statistics, the rent of one-bedroom apartments nationwide increased by 7% year-on-year, and the rent of two-bedroom apartments increased by 8.7% year-on-year. Zumpers National Rent Index.
The rental demand in big cities has increased significantly. According to statistics, since 2020, demand in New York has doubled, interest rent in San Francisco has increased by 79%, and rent in Seattle has increased by 55%. Rent a cafe.
Rents for single-family homes are also rising. Data shows that the increase in May is nearly four times the increase in May 2020. Core logic Rent single-family homes.
“The rental price of the low-priced tier increased by 4.6% year-on-year in May 2021, up from 2.7% in May 2020. At the same time, the high-priced rent increased by 7.9% in May 2021, up from 1.3% in May 2020. This is the fastest increase in low-cost rents since January 2017, and the fastest increase in high-priced rents in SFRI’s history.” Core logic.
Boesel said that rising rental prices have caused an uneven recovery in employment.
Prices are also rising as landlords are dealing with the continuing problems of the pandemic’s suspension of evictions. Landlords cannot evict tenants who cannot afford to pay, which leads them to increase the price of available rental properties to recover.
President Joe Biden issued a new order in early August to temporarily extend the moratorium for 60 days, but most renters in large cities are still employed and paying rent.
“Now is a good time to become a city apartment owner again,” Mark Parrell, CEO of Equity Residential, a real estate investment trust, told the media Washington post.
