Rental prices in the United States remain high and leave many budgets out; nevertheless, rent hikes could be coming to an end.
This is shown by the data on the price movements that rents had during last July, when on average for requested rentals increased by 14%according to information from Redfin.
Although it remains high and leaves out many families who are struggling against the highest inflation in decades with high prices on basic products such as food and gasoline, according to specialists is a new sign that the real estate market is cooling.
However, the data is lower than that of May and June, when rent growth was 16% and 15%, respectively; according to Redfin, the July increase is also the smallest since November 2021.
Another fact that Redfin considers to be significant has to do with the 0.6% increase in the median rent requested, it also had its slowest growth since last February; which in its annual comparison shows a fall of 2.1%.
“Large rent increases may finally be coming to an end, as landlords adjust to rent budgets. renters who are being pressured by the rising cost of groceries, gasoline, and other regular expenses“, considered the chief economist of Redfin, Daryl Fairweather.
The 14% increase last July meant that the median income nationally was $2,032according to data from Redfin.
Despite signs of a slowdown in price increases, the average rate of income in the country remains a challenge for millions of Americans who deal with higher costs every day due to inflation.
Last July, year-on-year inflation stood at 8.5%according to the most recent report from the Bureau of Labor Statistics.
Although the inflation data gave consumers a break in July, compared to the 9.1% reached in June, the rate of growth of rental costs remains above the rate of inflation.
According to data from the Bureau of Labor Statistics, during June and July, housing costs were one of the three components that with greater force they contributed to the movements of the Consumer Price Index (CPI).
In this regard, the chief economist of Redfin warns that rental prices will remain high for a whiledespite the incipient slowdown they show, mainly in markets where there is “strong” job growth combined with limited construction.
“These markets are likely to continue to see large rent increases,” Fairweather said.
An example of the phenomenon that the specialist indicates is that there are markets in which rents increased strongly during the past year and that continue with considerable increases.
The 10 metropolitan areas with rent increases greater than 20% in the past year were:
1. Cincinnati, Ohio: 31% increase
2. Nashville, Tennessee: 26% increase
3. Pittsburgh, Pennsylvania: 24% increase
4. New York, New York: 23% increase
5. Newark, New Jersey: 23% increase
6. Nassau County, New York: 23% increase
7. New Brunswick, New Jersey: 23% increase
8. Seattle, Washington: 22% increase
9. Indianapolis, Indiana: 21% increase
10. San Antonio, Texas: 21% increase
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Source: La Opinion