Posted on 06/13/2021 12:53:40 PM PDT by Browns Ultra Fan
According to Zumper, national rent growth has accelerated to nearly 5% for 2 bedroom units.
And the expected change in rent over the next 12 months is 9.5%.
Of course, national home price growth (ignored directly in the inflation numbers) is 13.16% YoY according to Case-Shiller.
Rent growth is highest away from traditional mega coastal cities like Seattle, San Francisco, Boston and New York City, and is highest in interior cities like Spokane WA, Gilbert AZ, Knoxville TN, Durham NC, and … Cleveland???
The Federal Reserve thinks they are fixing a hole in the economy, but they are creating inflation.
Its Powell/Yellen’s Massive Bubble Band, we hope the bubble doesn’t burst!
(Excerpt) Read more at confoundedinterest.net ...
Only makes sense rents will follow real estate prices
Good thing they raised the minimum wage or else ppl couldn’t afford the higher prices. It’s almost like they knew. /s
Blackrock has to make the money they spent on those overbids somehow.
Most rentals are apartments or condos owned by smaller investment companies or pooled money in the region. Blackrock has largely bought SFMs in just a few select markets.
(PS the money supply is up 50% in the last 18 months - blame the Fed reserve and gov - not Blackrock).
Of course. Plus if landlords just went through a year of tenant lease payment fails, it makes sense they would try to raise rents to recoup some of those lost dollars.
I was a renter my whole life but I could see us getting priced out of the game eventually so we left the East coast and bought some woods in rural MO.
Indeed
Investors are buying up the basic rental-type properties being offered in our market, turning them into rentals, but rental rates are jumping from $1100 a month to $1600 a month.
I am predicting 15% overall inflation this year.
If somebody doesn’t put a cap on the gusher, it’ll be 25% next year.
Investors are only about 1 in 6 purchaser so that doesn’t explain it. A more likely explanation is the 50% increase in the money supply.
Republicans have spent just as well over the years. Deficits don’t matter has been the theme for a while.
ping
Economic theory says you have to take what the customers are willing to pay, regardless of how much you need the money. Evidently, there is a shortage of rentals and renters have to pay up to get an apartment. The free market doesn’t care about your financial problems.
True enough but most savvy businesses try to charge initially what they think will make them stay in the black and then go from there.
What you say is true regarding the money supply increase, but it is not the Federal Reserve raising apartment rental rates.
An increase in the money supply will raise the price of everything - not sure I get your point
The fact that there is inflation (as there has always been since the Fed was created) does not force anyone to raise the cost of a good or a service, or justify major price hikes in all cases.
If you own an apartment building and your primary expense is a fixed-rate mortgage, the fact that gasoline and food prices are going through the roof does not have a major or immediate impact on your operation. You may want to make more (who doesn’t) but a 9.5% increase in rental rates in one year cannot be justified by inflation alone.
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