Posted on 06/18/2022 4:28:15 PM PDT by blam
Median rents in the US crossed the $2000 mark this past month for the first time ever, while rental markets surged 15% – 20% in a single year depending on the region.
This is yet another trend which supports the position that official CPI is inaccurate and overall inflation is actually much higher than the central bank and the Biden White House reports. The latest CPI print indicates an “official” inflation rate of 8.6%, while REAL inflation is closer to 17% according to pre-1990s calculations. The continued denial of real inflation rates is causing confusion among Americans who are facing vastly larger price increases than are often reported by the government.
Inflation apologists can’t seem to wrap their heads around the fact that the Fed and government use creative accounting to soften data and misrepresent the economic threat.
Rent prices jumped over 20% in Orange County, CA. They are up 19.3% in the greater Cleveland area. They are up 15.5% in the Cincinnati area. Nashville and Seattle saw prices rise over 30%. And, Austin, TX is witnessing epic rental inflation of over 50%. New York’s median rent cost climbed to $4000 per month despite the fact that vast numbers of people have left the city in the course of the past two years.
Officials including Treasury Secretary Janet Yellen have only just recently admitted that inflation is not transitory as they had insisted a year ago. However, the public seems to be learning that establishment economic predictions cannot be trusted and they are already preparing for more pain in the near future. A George Mason University poll indicates that the majority of Americans are cutting back on spending to adapt to higher prices. Over 66% of participants polled expect inflation to climb even more this year.
Inflation worries have continued to soar over the past several months while the populace has dealt with constant gaslighting from the media telling them that the economic instability they are facing is “not something they should be concerned about.”
The relentless expansion of prices suggests that the Federal Reserve will enact sweeping interest rate hikes in the coming months, though there are many economists that continue to disbelieve the possibility. Even with moderate hikes and slower spending, it is likely that inflation will climb unabated well beyond 2022. Central bank stimulus printing has triggered an avalanche of too many dollars chasing too few goods and now prices are evolving to meet the supply crunch.
The rent inflation issue is partially influenced by a number of factors including the mass migration of millions of Americans from blue states where covid restrictions and high taxes were strangling residents. But, with that migration now over, prices remain high due to dollar devaluation pressures. The greatest danger is that this will translate to increased poverty and homelessness by 2023. It is unlikely that Fed actions on interest rates will affect any change in the current trend, at least not until rates are adjusted much higher than mainstream economists expect.
Waiting for the pic...
You can thank the eviction moratoriums for this. Mom and pop LLs are selling en masse thus reducing the available rental units. If sold to owned occupied then fewer rental units available. If sold to another investor, the price of rental going up is inevitable.
Democrat voters ARE confused!
That guy is awesome.
Woohoo!!
The lock-down might take a decade to recover from because it caused more economic stress to an already dire situation, from pension funding (Private and Public), to Social Security and Medicare Part A. Stuff is about to implode.
“...Americans expect...”
So, most Americans are smarter than Powell and that Yelling person?
Who Knew?
Trump very quickly opposed wide scale shut down during covid, saying “we can’t let the cure be worse than the disease”. The problem was the liberal states stated locked down for another 6 months to a year. They refused to reopen businesses, crushing small business owners.
Yes, Trump presided over the initial shut downs when we didn’t know if we were dealing with a new version of the Black Death or what, but within weeks he was saying to open back up and just protect the elderly.
Liberal governors and liberal mayors own the damage from the Covid shut downs 90%. Trump, 10%.
Sure, rent has to surge to pay all the property taxes and make up for government saying no rent is due b/c of COVID. So—it’s ALL governments fault.
Democrats economy. A bunch of idiots voted for it
Homeowners costs are going up as well.
— rising mortgage rates
— increased maintenance costs
— higher property taxes
— creeping HOA fees
— rising utility costs
If there’s a roof over your head you’re going to be paying more and more.
Look up boarding houses and start building them. It’s a 19th century concept that worked fine for Americans.
You get a bedroom and two square meals each day - breakfast and dinner. There’s a community room to smoke cigars, sip cognac and follow your favorite sports team. And it won’t cost $2,000 a month.
“Idiocracy”
Since 2008.....with a brief pause sabotaged at every turn by Hillary Inc.
Looks like bankruptcy is in the near future for me, as I’m sure many others are contemplating.........
HOA costs skyrocketed at my rental.
Boarding houses as you described won't work anymore. They required people to be civilized, be polite and have some manners.
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