Rental Price Increases over 10% in Phoenix, Dallas, and Atlanta
After the pandemic slow down, rental prices increased dramatically according to a new report from Bank of America.
Rental prices in metropolitan areas like Phoenix, Arizona, and Dallas increases over 10% from the prior year last month.
Increases were seen across all income groups and demographics, but middle-income and younger Americans are seeing the largest rent increases, the report said
And rents are expected to stay raised this year as would-be homebuyers are priced out of the market amid rising interest rates.
July's inflation report showed shelter costs — which make up about one-third of the weight in the consumer price index — rose 0.5% from June and 5.7% from last year, the most since 1991.
Prices in southern state cities have increased 9.4% over the past year compared to Northeast regions — where prices are up 7.3%.
One of the main reasons for increasing rents in southern regions is a limited supply.
Rent inflation is one of the stickiest components of inflation and is expected to increase further.
Consumers will have to face downward pressure on their financial situations