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Rental rates across the U.S. for places to live rose an average of 12 percent in January to set a new record, according to Zumper, an online rental agency.
Last month, U.S. renters paid an average of $1,374 for a one-bedroom apartment, compared to $1,217 a year earlier, Zumper said.
In 2020 and 2021, rents edged up only 0.3 and 0.6 percent, respectively, the agency noted.
“For the national index to move by double digits takes incredible price increases everywhere, and that’s exactly what we’re seeing,” Zumper said in a research note.
Rents will continue to rise this year as potential buyers remain priced out of the tight housing market, the note predicted.
In 2020 as the COVID War began, 34.7 percent of homes were rented, according to U.S. census bureau data. As 2021 ended, the proportion had grown to 36 percent, rental database iproperty management reported.
Soaring rents “also reflect a pre-existing housing shortage that will likely continue to push rent up in 2022,” Zumper said.
The U.S. needs another 5.24 million single-family homes to fulfill demand, Realtor.com reported, while new-home construction languishes at its slowest space since 1995, due to shortages of land and materials, as we reported in “Despite Steady Demand, Home Builders Limiting Sales” (17 Aug 2021).
TREND FORECAST: The boom in rental housing continues to feed on itself.
A shortage of homes keeps home prices high. Inflation and high rents prevent many households from being able to save enough to make a down payment on a house. And as we detailed, wages are not keeping up with inflation… especially home price inflation.
In 2021, home prices rose 19 percent. However, in the rigged Consumer Price Index of the U.S.S.A., rising home prices are not included in the CPI.
Housing landlords get richer while working families are trapped living in other people’s properties.
This denial of home ownership to vast numbers of families will continue indefinitely until home prices level off, real incomes rise, and rental rates stabilize… a combination of factors that are unlikely to achieve with the current crime syndicate political gangs running the nation.