Evictions to rise with rent prices..
What can be done?
In a recently published 2021 rental analysis by Realtor.com, median rent increased nearly 20% year-over-year (YoY) for 0-2 bedroom homes. That increase is more than five times the growth rate reported just prior to the beginning of the pandemic two years ago. Of the 0-2 bedroom homes, the need for increased space (likely due to new working conditions) led to the greatest spike in rent prices to be for 2 bedroom homes - nearly 12% YoY in 2021 compared to only ~4% YoY in 2020. In addition to rising rent prices, the ripple effect could be a cause for concern for all Americans; the AP reports, “economists worry about the impact of rent increases on inflation because the big jumps in new leases feed into the U.S. consumer price index, which is used to measure inflation. Inflation [already] jumped 7.5% in January from a year earlier, the biggest increase in four decades.”
Of the top 10 cities in America to experience significant rent increases, 4 cities were in Florida with Miami reporting an almost 50% YoY average increase in median rent prices! Nineteen of the fifty largest metropolitan areas in the United States saw at least a 20% YoY increase in median rent prices. Supply chain issues are part of the problem, with new household construction on hold or significantly delayed in many cities due to materials shortages. Demand also started to increase in the past year from younger family members wanting to leave their family home with pandemic restrictions loosening across the country.
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