Median Rent Surpasses $2,000 For The First Time, Increases Faster Than Income
For the first time, the average monthly rent has surpassed $2,000. An increase that is four times faster than income.
According to a new report from Redfin, the technology-powered real estate brokerage, rent prices for apartments are up 15% from May 2021.
“More people are opting to live alone, and rising mortgage-interest rates are forcing would-be homebuyers to keep renting,” said Redfin deputy chief economist Taylor Marr.
“These are among the demand-side pressures keeping rents sky-high. While renting has become more expensive, it is now more attractive than buying for many Americans this year as mortgage payments have surpassed rents on many homes. Although we expect rent-price growth to continue to slow in the coming months, it will likely remain high, causing ongoing affordability issues for renters,” he continued.
The top five cities with the fastest rising year-over-year rents are Austin (48%), Nashville (32%), Seattle (32%), Cincinnati (32%), and Miami (29%).
Per the report, New York and New Jersey have the highest median rents, with an average of $4,008 per month or $48,096 annually. Kansas City has the lowest median rent price with an average of $1,428 per month or $17,136 annually.
Those who have stayed in their apartments still saw a leap of 4.8% in their rent.
As the cost of living continues to rise, many Americans are struggling to keep up. Now that the average monthly rent has surpassed $2,000 – families face a new serious strain that is impacting almost everyone across the country.
Gas is $5 a gallon, 10 year old Honda Civics cost $20k, suburban middle class homes cost half a mil and rent is $2,000 a month
Hope the $3k in stimmy checks was worth it pic.twitter.com/zDQqGA1ofS
— Ross Hendricks (@Ross__Hendricks) June 10, 2022
As many families led by conservative voices have rightfully pointed out, the Joe Biden administration routinely fails to assure Americans about any form of relief. Mind you, this is the same administration that gaslighted the nation by patting themselves on the back for saving us $0.16 on July 4 last year.
Last year we saved $0.16 on hotdogs.
This year we can’t afford to drive to the store to buy them.
— Lauren Boebert (@laurenboebert) June 10, 2022
Remember when we saved $0.16 on our 4th of July BBQ Cookout? pic.twitter.com/ha72WkMpXp
— Thomas Thornton (@TommyThornton) June 12, 2022
Per the Redfin report: “The increased demand for rentals from people who would rather buy a home is likely to continue. Mortgage applications to purchase a house are 21% lower than a year ago as rising interest rates continue to price more would-be homebuyers out of the market.
Mortgage rates play a large role in what price a home buyer will pay for a home. So “a rate increase from just 4.5 percent to 5 percent would mean a homebuyer pays more than an extra $1,000 per year and more than $32,500 over the life of a standard 30-year loan,” according to Adrian Norman from Timcast.
As The Daily Wire reported, the slowdown in home purchases comes for everybody, as it’s impacting the wealthy who are a part of the luxury market as well.
“Many home seekers are deciding that it’s simply not worth it to purchase a luxury home at a time that both purchasing price and lending costs are so high,” Heritage Foundation research fellow Joel Griffith told The Daily Wire.
“Relative to lower-priced homes, a greater percentage of purchase price is paid for in cash — rather than utilizing a mortgage since the cost often exceeds conforming loan limits,” Griffith continued. “Many purchasers are balking at cashing out of stocks at depressed levels in order to purchase real estate at inflated — possibly bubble — levels.”