Rents Rise Most in 30 Years, Signaling More Pain for Americans

[Calista241]

Source: Bloomberg

A measure of rents in the U.S. posted the largest monthly increase in three decades, underscoring an increasingly high cost of living that’s poised to contribute even more to inflation this year.

The index for rent of primary residence increased 0.6% in February from the prior month, the most since 1987, according to Bureau of Labor Statistics data released Thursday. It was part of an acceleration across the broader shelter category, which accounted for more than 40% of the monthly increase in an index of consumer prices excluding food and energy.

Rents, which have been in rising in the U.S. for the past year, are reported with a lag in the CPI report. That means they’ll contribute even more to inflation going forward, which already stood at a 40-year high in February. Prices are set to climb further as Russia’s invasion of Ukraine disrupts supply chains and availability of key commodities including oil.

“There’s still further strength to be seen,” Sarah House, senior economist at Wells Fargo & Co., said of rent prices. “We don’t expect that to peak until maybe the third quarter of this year.”

Read more: https://www.bloomberg.com/news/articles/2022-03-10/rents-rise-most-in-30-years-signaling-more-pain-for-americans

[cbabe]

1. How much is this due to foreign investment,

hedge fund investments, bank ownership of foreclosures, etc. focused on profit not housing.

[JCMach1]

11. Real estate has become a pure speculative asset. That needs to be stopped

ASAP...

[cbabe]

13. Can be done if the will is there.

Vancouver, BC overrun with speculators takes decisive action

The speculation and vacancy tax is an annual tax based on how owners use residential properties in major urban areas in B.C.

Everyone deserves an affordable place to call home, yet house prices and rent have skyrocketed out of reach for too many people. The provincial government is taking action to address this crisis through the annual speculation and vacancy tax, which will contribute towards:

Turning empty homes into good housing for people who live and work in B.C.
Supporting affordable housing initiatives

Www2.gov.bc.ca 2021

[BobTheSubgenius]

2. I don't know where or when this is going to end, but it has to.

How people can live when they have to pay $1800 for a 1 BR is completely beyond me.

When I was a landlord, I kept my rents about 30% under market. Two of the tenants that were there when I bought the building in 1988 were still there when I sold it in 2012. I figured that if people were going to go to work so I didn't have to, I should appreciate it.

It doesn't seem like many feel that way now.

[usonian]

3. Shark Attack

https://duckduckgo.com/?t=ffab&q=trump+real+estate+book&ia=web

[turbinetree]

4. And people want to know what inflation is all about, means wages have not kept up to costs....

or greed.....because some outfits are just buying up residential neighbors and new developments renting them out.....and some are paying out millions to investors and bosses of corporations....

[I_UndergroundPanther]

5. Some rich greedy people

Need to not be rich anymore. Make them live on minimum wage and then have them ,like so manyhave to,rent a 1 bedroom for 1800 bucks a month.

Then tell them the gravy train wont be coming around for them anymore now. Get used to it

The whining would be deafining.

But the greed would stop.

[cstanleytech]

6. The wealthy and companies are trying to gouge back the incremental increase people have gotten with

increased wages and frankly I am fed up with it and its past time to revisit and revoke the whole trickle down economics from Reagan as its failed.
We need a major increase for taxes both on those earning more than 2 million a year and on companies and tie the one to companies to both what they earn in the US and worldwide and factor in the number of jobs that they provide that pay more than 250% or more over the federal poverty level here in the US.
The more jobs they have here in the US that pay that to their employees then the lower their corporate taxes.
As for the one to wealthy it should be tied to the % of Americans that earn more than 250% above the federal poverty level (which Congress nor the President should have any hand in setting) and the more that earn that the lower the tax the wealthy pay.

[NullTuples]

7. Gee, maybe it's connected to financial institutions buying up homes for rental portfolios

Sometimes the same units they held the mortgage deed on.

Gotta maximize those returns for the investors, don't you know.

[Cobalt Violet]

8. It's unbearable.

Homelessness is going to soar. They haven't built any housing but luxury housing for decades.

[raccoon]

9. Amen! Nt

[forthemiddle]

10. Our rent went up 12.5%

Ours went up $150.00 for this year, and we signed a two year lease that promises another $150.00 next year.
We signed it because we were a little under market value for our area and we didn't want to risk another larger increase next year.
We are only expected to be here for 3 more years, and we really didn't want to add the expense of another move so we agreed to both increases.
On top of that, my husband drives for a living. On average it is 5,000 miles a month. Even though he is reimbursed at the Federal level, that unfortunately has not gone up as quickly as the price per gallon has. Thankfully he drives a hybrid.
So between rent, gas, and groceries I am not very positive on the economy this election season! (no that doesn't mean I will switch parties, it just puts a damper on my normal election excitement.)

[JCMach1]

12. Cap rents at 30% minimum wage... Just a modest proposal

And watch the minimum wage magically become a living wage.

[MichMan]

16. If minimum wage was $15 per hour @ 40 hrs per week.

30% of that would be $800 per month

Are you proposing that no one could be charged over $800 per month in rent, regardless of income, even those who are renting homes costing over $1 million?

If I was a landlord, I would be better off evicting my tenants and selling outright, rather than trying to pay mortgages, insurance, maintenance, and taxes for that amount of rent.

[Polybius]

18. Control mortgages too

Make the average two bedroom home cost no more than $100,000.

[MichMan]

19. What happens to people who own homes way more than that who want to sell?

[JCMach1]

22. why it was a modest proposal...

I got really pissed at realty people/landlords when they throw out the BS 30% number when dealing with retirees on fixed income... so literally no matter how much you may have in assets these morans still go by that BS.

The days of housing being able to be 30% of income are long gone as should that standard.

[JCMach1]

14. Also, things like 30% of income rules are profoundly discriminatory

Against, for example, retirees on fixed income.

Trust me, I had a hell of a time finding a rental for my parents who I am moving near me.

They had to rent while their properties back home sell.

[Initech]

15. Rents are always rising. We never get any breaks.

Also - fuck Putin!

[Polybius]

17. Why can't we do something about it?

Make rent $700 a month maximum for two bedrooms.

[MichMan]

20. No sense even being a landlord under those conditions

Why pay a mortgage, taxes, insurance and maintenance on a rental property if you lose money every month renting?

Easier to just evict your tenants and get out of the rental business.

[Polybius]

21. Eliminate property taxes for non-millionaires

Raise it sky-high for billionaires. Mandatory lower house prices by huge amounts. Have a house that's worth $800,000? You can sell it for $300,000 max.

No one will sell at first, but then all the new houses go for sale in the $150- $200k range.

[DemocraticPatriot]

23. Annual increases in rent out to be legally limited...

These annual increases I have been reading about, of 50% or even 100% more over the previous year are ridiculous and inconceivably cruel, and ought to be illegal. A maximum legal annual increase of 10% seems reasonable, on existing tenants, and would be slightly higher than the current inflation rate-- which I don't expect to continue for the long term anyway.