In the second quarter of 2022 compared to the same period in 2019, rent rates increased 23 percent nationwide as landlords in suburban counties started to profit from migratory workers who work from home.
According to information made public earlier this month by the US Census Bureau, the median cost of a rental in the second quarter was $1,314.
According to Axios, the data indicates that suburban landlords are profiting from the epidemic exodus from cities and that rising demand brought on by new residents is driving up costs for everyone in suburban areas.
According to the data, landlords are increasing rents in order to cover rising inflation-driven expenditures by charging tenants more money.
As the Fed raises interest rates to combat inflation, would-be purchasers are forced into the rental market and drive up demand.
Despite the fact that the rent boom eased in the early summer, according to a July article in Redfin, prices continued to slowly grow.
The statistics come as the country struggles to adapt to its altered demographic structure as a result of immigration during the epidemic.
The data supports stories that tenants have been sharing for months about how rising rents have forced them out of their homes and the communities where they had previously depended for inexpensive living.
It’s pure, unadulterated greed,’ he said. According to Andrew Amuso, a Phoenix resident, “If you saw my apartment, you would be amazed that I’m going to be spending over $1,500 a month.”
Before the epidemic, Amuso had been paying $900 a month for eight years in the same flat.
His rent was up by $276 per month in 2021, and the renewal for his following term was offered at $1,585.65 per month this year.
“When I questioned why they were increasing the rent, they said that they could. They are correct, too. They can.
Amuso’s observation was supported by Redfin Chief Economist Daryl Fairweather, who said that landlords are raising their rent because there is a demand.
He predicted that they would continuously raising the price to maximise their profit.
Redfin published a research in July that showed shocking rent increases in major cities. According to the data, rent increased by 40% in Portland, OR, 38% in Dallas, TX, and 23% in Jacksonville, FL.
During the epidemic, people moved in droves from those cities to the nearby suburbs, causing those rent costs to skyrocket.
A net gain of 10,498 individuals occurred in Kaufman County, Texas, which borders Dallas, between 2020 and 2021.
Just south of Jacksonville, in St. John’s County, Florida, there was a net gain of 16,321 individuals.
According to Fairweather, the issue will only become worse as homebuyers are pushed back into the rental market as the fed raises rates to combat inflation.
He said in July that “many prospective first-time homeowners are rapidly being priced out of the market by record-high property prices and rapidly rising mortgage rates,” leaving them with the choice to rent or relocate to a region with a cheaper cost of living.
Renters may initially save money in costly property markets, but they may eventually have to put up with year after year of rent rises.
Those who relocate and purchase a more affordable home today will spend much more than they would have if they had done so last year, but they will be able to accumulate equity over time and secure relatively steady monthly housing expenses moving ahead.