{"id":2037922,"date":"2023-09-19T19:26:01","date_gmt":"2023-09-19T23:26:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-rent-prices-touch-near-record-high-in-august-report\/"},"modified":"2023-09-19T19:31:40","modified_gmt":"2023-09-19T23:31:40","slug":"us-rent-prices-touch-near-record-high-in-august-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-rent-prices-touch-near-record-high-in-august-report\/","title":{"rendered":"US rent prices reach near-record high in August, says report."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fus-rent-prices-touch-near-record-high-in-august-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2037922&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>National Rent Prices Soar to Near-Record High as \u200bDemand Outpaces Supply<\/h2>\n<p>In August, national rent \u200bprices reached a nearly all-time high, driven by a shortage of available properties to meet the growing demand, according to a recent\u2063 report from Rent. The median rent price rose by 0.71 percent \u200dmonth over month, reaching $2,052, just $2 shy of last year&#8217;s record \u2062of $2,054. This increase surpassed \u200bthe previous month&#8217;s growth rate of 0.41 percent.<\/p>\n<p>Comparatively, data from the Mortgage \u200bBankers Association (MBA) \u2064revealed\u2064 that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-mortgage-rates-soar-near-5\/\" title=\"U.S. Mortgage Rates Soar Near 5%\">median mortgage payment<\/a> for a single-family residential property was $2,161 in\u200d July.<\/p>\n<blockquote>\n<h2>Related \u2064Stories<\/h2>\n<ul>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/epochtv\/california-housing-affordability-hits-16-year-low-increase-in-single-family-home-prices-5486189?ea_src=author_manual&#038;ea_med=related_stories\">California Housing Affordability Hits 16-Year Low, Increase In Single-Family Home \u200dPrices<\/a><\/h3>\n<p class=\"text-comp-caption\">9\/4\/2023<\/p>\n<\/li>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/real-estate\/30-year-mortgage-rates-surge-to-highest-level-in-20-years-as-home-prices-remain-elevated-5474785?ea_src=author_manual&#038;ea_med=related_stories\">30-Year Mortgage \u200cRates Surge to Highest Level in \u206420 Years as Home Prices Remain Elevated<\/a><\/h3>\n<p class=\"text-comp-caption\">8\/18\/2023<\/p>\n<\/li>\n<\/ul>\n<\/blockquote>\n<p>Despite the significant increase, the growth rate fell below the average for this year.\u2062 Since February 2023, monthly rent prices have typically risen by 0.97 percent. \u200cHowever, rents have still climbed by 6 \u200dpercent since hitting a low of $1,937 in February, resulting in an \u200cadditional $115 burden for \u200dtenants each month.<\/p>\n<p>&#8220;We&#8217;ve been observing a steady upward trend in prices since February,&#8221; explained John Leckie, a research analyst for Rent, in an\u200d interview with The Epoch Times.<\/p>\n<p>Leckie also noted that \u2062the current trends \u200bindicate a substantial drop in demand and an increase in supply.<\/p>\n<p>&#8220;Both \u2064of these factors are working together\u200c to keep rent growth below its normal rate,&#8221; he added.<\/p>\n<p>On \u200ca year-over-year basis,\u200c rent \u200bprices experienced a modest decline of 0.06 percent.<\/p>\n<p>At the state level, four states saw \u2063double-digit increases\u2062 in rent prices compared to the previous year: Mississippi (19.3 percent), Iowa (14.13 percent), North Dakota (12 percent), \u200band South Dakota (11.65 percent). Overall, ten states reported gains.<\/p>\n<p>This surge in prices can be \u2062attributed to the influx of people moving to these regions, as they are\u200c popular destinations for households relocating from the northeast and west coast.<\/p>\n<p>&#8220;When you have a\u2063 high demand and limited supply, prices naturally\u2062 rise,&#8221; explained Leckie.<\/p>\n<div class=\"my-5\">\n<h2>State of the\u2064 US Rental Market<\/h2>\n<p>Over the past few years, housing\u2063 costs\u200b for both\u2063 homebuyers and renters in the United \u2062States have\u200c skyrocketed.<\/p>\n<\/div>\n<p>According to the \u2064Bureau of Labor Statistics, the shelter index within the Consumer Price Index (CPI) remained above 7 percent \u2062and increased by 0.3 percent\u2063 from\u200d July to August. \u200dThe rent for primary residences rose by nearly 8 percent and climbed 0.5 percent month over month.<\/p>\n<p>Experts in the industry believe that relief may be \u200don the horizon with the construction of 1.2 million new rental units in the past three years.<\/p>\n<p>A report from Rent Cafe, using data \u200dcompiled by Yardi Matrix, \u200bprojected that an additional one million \u200bnew rentals will be completed by 2025.<\/p>\n<p>&#8220;Developers \u2062are working tirelessly \u2064to finish projects that were approved during the peak of the pandemic to meet the demand\u2062 from \u2062renters seeking more apartments as hybrid work arrangements continue,&#8221; stated \u200dthe report.<\/p>\n<p>However, rental supply growth may slow down once the current wave of projects\u200c is completed \u200ddue to stricter\u200c bank lending standards and rising costs of labor, land, and\u200d materials, warned Doug Ressler, a senior analyst and manager \u200cof business intelligence\u200b at Yardi Matrix.<\/p>\n<p>&#8220;Construction debt starts at \u20648 percent\u2062 interest, and most banks\u200b only lend 60 percent or less of the\u200d total project cost. Junior construction debt has even <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/janet-yellen-as-congress-for-billions-to-help-other-countries-debt-relief-climate-change-initiatives\/\" title=\"Janet Yellen As Congress For Billions To Help Other Countries\u2019 \u2018Debt Relief,\u2019 \u2018Climate Change\u2019 Initiatives\">higher interest rates<\/a>, reaching the mid-teens,&#8221; Ressler explained. &#8220;This financing structure can make it \u200cchallenging for companies to\u200b initiate new construction projects unless they already have a \u200dsubstantial amount of capital.&#8221;<\/p>\n<div class=\"my-5\">\n<h2>Americans\u200c Spending\u2063 More of Income on Rent<\/h2>\n<p>A recent study revealed that a record number of renters are allocating at least one-third of their income towards rent.<\/p>\n<\/div>\n<p>In July, Harvard&#8217;s Joint Center for Housing Studies published The State of the\u200d Nation&#8217;s Housing 2023 report, which found that nearly\u200c 22 million households spend more than 30 percent of their pretax income on rent. Additionally, almost 12 million households are spending \u200cover half of \u200dtheir earnings on housing.<\/p>\n<p>The authors of the \u2062report noted that \u2062the trend of\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-rent-prices-touch-near-record-high-in-august-report\/\" title=\"US rent prices reach near-record high in August, says report.\">renter households facing financial burdens<\/a>\u200d had been steadily declining over the past \u2063decade. However, the COVID-19 pandemic \u2064reversed this progress,\u2062 disproportionately \u200baffecting low-income households.<\/p>\n<p>&#8220;Housing\u2063 costs remain significantly higher than <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-final-farewell-to-zero-covid-china-reopens-its-borders\/\" title=\"In Final Farewell to Zero-COVID, China Reopens Its Borders\">pre-pandemic levels due<\/a> to substantial increases in recent years,&#8221; said Daniel \u200bMcCue, \u200bsenior research \u200dassociate at the Joint Center.<\/p>\n<p>Housing experts generally recommend that tenants \u2064spend less than 30 percent of their income on rent. However, achieving homeownership has become increasingly challenging due \u200dto \u2062affordability\u200b issues.\u200c The \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-set-for-historic-measure-to-curb-inflation\/\" title=\"Federal Reserve Set for Historic Measure to Curb Inflation\">average 30-year fixed-rate mortgage<\/a> is \u200cabove 7 percent, while the median sales price of homes sold in the second quarter exceeded $416,000.<\/p>\n<p> <\/p>\n<h2> How\u200b have population growth, increased migration, and the ongoing housing shortage contributed to the highly competitive rental market?<\/h2>\n<p><span>  Wth is still struggling to keep up with demand. The combination\u200b of population growth, increased\u2064 migration, and \u200dthe\u2064 ongoing housing shortage \u2064has created a highly competitive rental \u200cmarket.<\/p>\n<p>The impact \u2063of these market\u200d dynamics can be seen in major cities and metropolitan areas across the country. Rent prices in popular cities such as San Francisco, New York City, and Los Angeles have remained exorbitantly high,\u2063 making it increasingly difficult for renters \u200bto find affordable housing options.<\/p>\n<p>In fact, a \u200drecent study\u2063 by Zillow \u2064found that the average renter in the United States would need to allocate\u200c nearly 30% of their income towards rent, surpassing the recommended 30% threshold for \u2062housing affordability.<\/p>\n<p>This has \u2063led to a rise in housing insecurity\u200b and \u2064a growing population\u200c of rent-burdened individuals and families. Many renters are forced to make difficult choices, sacrificing other essential needs to keep a roof over their heads.<\/p>\n<p>The impact of soaring rent prices is\u2062 not limited to individuals\u200d and families. It also has significant implications for the overall economy. As\u2064 more households struggle to afford their rent, they have less\u2062 disposable income to \u200cspend on other goods and services, which can hinder economic growth.<\/p>\n<p>Furthermore, the lack of affordable rental options can have negative effects\u200b on workforce mobility. Individuals who are unable to find\u200b affordable housing in certain\u2064 areas may \u2064be deterred \u200dfrom pursuing job\u200d opportunities in those locations, leading to labor market inefficiencies and potential\u200c talent shortages.<\/p>\n<p>The current \u2064state of the rental market highlights the need for comprehensive and sustainable \u200bsolutions\u200b to address the housing crisis. Policies and initiatives that\u2063 promote the construction of affordable housing, increase housing subsidies, and protect renters from unfair practices are crucial.<\/p>\n<p>Efforts\u2064 should also be\u200d made to encourage diverse housing options, including mixed-income developments and innovative co-living arrangements, to\u200b provide \u200caffordable alternatives to traditional renting.<\/p>\n<p>Ultimately, addressing the soaring rent prices and the underlying housing shortage requires a multifaceted approach that involves collaboration between policymakers, developers, and community stakeholders. By prioritizing affordable housing as a key societal need, we can work towards creating a more equitable and sustainable rental market for all.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National rent prices reached a near-record high in August due to insufficient supply, a Rent.Research report revealed. Median rent prices rose by 0.71% to $2,052, just $2 shy of last year&#8217;s peak of $2,054.<\/p>\n","protected":false},"author":278,"featured_media":2037923,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2037922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2037922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2037922"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2037922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2037923"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2037922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2037922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2037922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}