Rents Are Going Higher!

[Jared Smith]

In the first half of the year prices have increased more than 11%, well above the broader inflation rate. Now, rent prices in 87 of the country’s 100 largest cities have fully returned to pre-pandemic levels.

The website Apartment List explained some of the trends behind the trend.

• Moving out: During the beginning of the pandemic, young renters left the big city to hole up with their parents. Now, after one too many times being asked to empty the dishwasher, they're looking for their own places.
• Buying a house is too expensive: Skyrocketing housing prices are causing some would-be homeowners to choose renting instead.
• A sense of urgency: People aren’t browsing Zillow to pass a slow day at work—they want to rent right now, crowding the market with high-intent customers.
• There isn’t enough housing available, which, of course, drives up prices.

Bottom line: “When it’s all said and done, 2021 will go down as a year when housing affordability went from bad to really bad, especially in mid-sized markets,” per Apartment List’s Rob Warnock.