Renters in the United States are really starting to feel the financial pinch as rents hit record highs once again. For the last 17 months, rent has been hitting new highs each month. The pressure on renters is getting harsh.
The national median rent hit a new record high of $1,879 a month in July, up 12.3% from a year ago, according to Realtor.com and reported by CNN. While rents have been hitting new records for nearly a year and a half. July marked the sixth-straight month of moderating growth, retreating from a 17% year-over-year rent increase in January.
Rents rose by double-digit percentages in all size categories in July compared to a year ago, with monthly rents for studios up 14.3% to $1,555; one-bedrooms, up 12.2% to $1,745; and two-bedrooms, up 11.7% to $2,103.
The South and Northeast have seen the largest rent increases. Miami, where rents were up 26.2% from a year ago, saw the biggest increase among the 50 largest US cities for the 10th-straight month. Miami was followed by New York, Boston, Chicago, and Orlando. –CNN
When asked why they plan on raising rents, landlords cited higher costs for property management expenses, including tax payments, maintenance and upkeep, and utilities. In addition, fewer landlords plan to sell properties in July compared to January, now that the sales market has cooled and rents have soared, according to the survey.
“Like renters, landlords are feeling financial pains from the inflationary economy,” said Ryan Coon, Avail co-founder and VP of Rentals at Realtor.com. –CNN
Rent is not the only cost most people are dealing with either. Inflation is taking a toll as well, as the cost of necessitates such as food continues to rise. The everyday American is finding it harder and harder to make ends meet.