America’s median rental rate set a new record for the 17th straight month, climbing more than 12% from a year earlier
Americans are still suffering from unabated increases in their living costs. The latest indicator shows that rents have reached new records for the 17th consecutive month.
Realtor.com announced Wednesday that the median monthly rent rose 12.3% to $1,879 for 50 of its largest metropolitan areas in July. This data was derived from Realtor.com listing for studios, 1-bedroom and 2-bedroom homes. Larger apartments and houses were excluded from this median.
Even though rents have been rising by double digits, it has fallen from the 17.3% peak in January. It follows a gain of 14.1% in June, compared with a year before.
“Landlords have eased up on the size of rent increases, but many renters are still feeling the pinch on their monthly budgets,”Danielle Hale, chief economist at Realtor.com said. “Even as they juggled higher costs for food and groceries and transportation, rising rent and housing expenses is the biggest source of financial strain.”
Inflation in the US rose to 8.5% in July, after rising from 9.1% in June (a record for 40 years) And with the nation’s central bank pushing interest rates higher to cool inflation, US mortgage rates have climbed to the highest level since November 2008, making it tougher for renters to buy homes.
According to the US Census Bureau, new home sales dropped 29.6% compared with last year’s July. The average home price rose 23% to $546,000.
“Many renters are simply tapped out,”Hale spoke. “Between soaring inflation, higher gas prices and the stock and cryptocurrency markets taking a beating, they have less cash on hand to spend more on housing.”
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At 26.2% and 25.4% respectively, Miami saw the largest July rent rises, while New York City was at 25.4%. Realtor.com reported that there were bidding wars and lines at open houses for New York City apartments. Rents in New York City rose 38.3% in July, nearly tripling the growth rate in surrounding suburbs. Year-on-year rent increases in Boston, Chicago and Orlando were also higher than 20%.