Rents increase fastest month over month since 1991

[Henry Lazerow]

Interesting CPI data. The downside is this will most definitely lead to a rate hike. I have strangely seen in Chicago over the last 10 days a strong increase in investor demand. Getting offers on all 3 of my listings and also having a few clients in bidding wars. For the month or so prior to this it was very slow.

After seasonal adjustment, the category gained 0.7% last month, up from 0.5% the month prior and its fastest monthly pace since January 1991. Over the past year, the shelter index gained 6.2%—a rise that accounted for about 40% of the increase in core CPI, according to the government data.

Two of the main measures of rent prices included in the shelter category increased quickly in August. Both rent of primary residences and owners’ equivalent rent—an estimate of how much one’s home would be worth if it was rented out—gained 0.7% month-over-month, more than double their long-term average increase of about 3%.

[Paul De Luca]

@John Warren

I just listed a 3 bed/1 bath unit in Berwyn for $1500 and had 7 applications in 24 hours. As of 3 days on the market we have 16 applications and almost 100 inquiries without even showing the unit.