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Monday, December 05, 2022

Rental rates in the US are through the roof

pte20220824004 building/living, business/economy

In July, the increase was up to 8.3 percent, according to Bank of America Institute data.

Us Metropolis Boston: Fares Are Rising Faster Than In Decades (Image: Pixabay.com, Photosforyou)

US metropolis Boston: Fares are rising faster than in decades (Image: pixabay.com, photosforyou)

Charlotte (PTE004/24.08.2022/06:10) –

Data from the Bank of America Institute http://business.bofa.com shows that rent prices in the US are rising at the fastest pace in decades and are affecting more and more homes. In July of this year alone, they grew an average of 7.4 percent. For consumers with annual incomes of $51,000 to $100,000, the plus was also 8.3 percent. The rental price is thus higher than normal inflation, which is seven per cent. Only the top earners with an annual income of more than $251,000 outperformed, with a 5.9 percent increase.

Low earners are more likely to be tenants

“Significant increases in rent could have a significant impact on the financial health of families, especially for those with middle and low incomes,” the report said. Rising rents are a worrying development as they have the most direct and rapid impact on the household budget. According to the Census Bureau http://census.gov, approximately 34 percent of American households are renters. For low- and middle-income households of less than $31,133, the US average, the percentage is as high as 52.6 percent.

In general, households spent about seven percent of their income on rent in 2020. Ten percent of households in which there was no one with a college degree. Forecasts from the Federal Reserve Bank of Dallas suggest that rental inflation is yet to increase before peaking in mid-2023. The peak is expected for May, with an average of 8.3 percent. “This suggests that higher rent pressures are likely to continue in the foreseeable future,” the Bank of America report said. However, at present the sharp increase in salary could not compensate for this.

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