Rent Increases Across the Board in the USA, Bodes for Increased Values of Rental Properties

Rental rates are increasing so fast, that economists are struggling to keep up. The Guardian Newspaper in bold print reports:  

"RENTERS ACROSS AMERICA FACE SHARP INCREASES, AVERAGING UP TO 40% IN SOME CITIES."

 Rental prices are skyrocketing with many renters stunned and grappling with either having to move or pay much higher rents. For many families it is a difficult "unexpected" living expense. 

One tenant in Sarasota, Florida had a 950 s.f. apartment for years , paying $900 per month. When the building sold he rented a 700 s.f. apartment, and even though it was 250 s.f. smaller the rent was $1,500 per month.  After one year the rent was increased to $1,947.  So his rent has more than doubled over a 12 month time period. 

Redfin reported rental increases averaged 14% in December of 2021. But since December rates have made a large jump up even higher. 

Some examples:

 

Austin, Texas............................+40% rental increases above prior year

New York, N.Y..........................+35%

Florida......................................+30%

 

Why?  The USA is experiencing a housing shortage. Some say we are 4,000,000 houses "short" of demand. It is the highest housing shortage in 30 years. 

Rental increases and general inflation for food, and other living expenses have far exceeded any salary increases of the Post Covid period. 

 

Solutions?

 

1. Build more houses

2. Build more multifamily properties

 

Ben Boothe and Associates, Appraisals and Environmentals

www.benboothe.com   call us!  817 793 1484   email: benboothe@gmail.com