Home rental prices dropped in a number of regions during the pandemic but now they are growing again.
In some areas rental prices are now the highest that they have been in the past 2 years. In Las Vegas they are seeing some of the fastest climbing rates right now for rental homes in the entire country.
The typical rental rate in Vegas has increased almost 20%, a little over 17% year over year in May. They might be growing quickly in rental rates but other areas like Phoenix are ahead by a small amount, topping the list with rents increasing 17.7% compared to the 17.3 percent for Las Vegas.
In some regions it has been declared that rents have fully recovered from whatever dip they might have taken during the pandemic.
What is increasing rent? There are a variety of factors that have been attributed including the rising home costs in the market and the housing bubble has forced many to rent because they cannot afford a home of their own.
It's expected that the cost will only continue to climb from here and Americans might have to get prepared to pay more for their rent in the future. It's anticipated by some that more worrisome inflation might be coming to the U.S. housing market eventually.
The more that the standard of living gets squeezed for millions of people around the country, pricing millions out of the dream of home ownership, and the more they see their quality of living fall then they might start to get a little more skeptical and vocal about where their funding to the government is going and that is sure to fuel up more interesting political theatrics.
Shelter is a basic necessity and when you've got the cost of rent and home ownership growing so rapidly that people can't work hard enough to keep up with it and they are rapidly being priced out faster than they can save etc, that looks like a complete recipe for disaster.
More than 200 companies and investment firms are reportedly buying up thousands of homes in the U.S., according to John Burns Real Estate Consulting.
Whatever the cause, millions need a solution and one that is coming soon and not years from now. Though surely the ones who had a hand in making this mess aren't likely to be the ones to solve it.
Who is to blame for the high costs?
Is it due to the deteriorating purchasing power of fiat currency? Speculation? Overregulation? It depends on who you ask.
One thing is certain though and that is there is no clear solution in sight to the problem for right now. And actors within the market are restricted in dozens of ways from trying to naturally come up with a solution to this problem in a timely manner.
Nearly 40% M1 inflation in 2020?