Why Rent Prices Have Gone Through the Roof All Around The Country

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Why Rent Prices Have Gone Through the Roof All Around The Country

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Eviction moratoriums or not, it seems few people in the rental housing industry is having a good time right now. Landlords are working hard to deal with the damages of the last year and a half of income tragedy, and many renters are facing evictions and are scrambling to find new homes. A major thorn in the side for the thousands of people trying to find their new home is the skyrocketed rental price. Despite the seemingly stagnant year without people moving in and out thanks to the moratoriums, the average rent price has changed over the last sixteen months. What’s happening to the rental prices in the industry?

Keeps Going Up

Eviction moratoriums or not, it seems few people in the rental housing industry is having a good time right now. Landlords are working hard to deal with the damages of the last year and a half of income tragedy, and many renters are facing evictions and are scrambling to find new homes. A major thorn in the side for the thousands of people trying to find their new home is the skyrocketed rental price. Despite the seemingly stagnant year without people moving in and out thanks to the moratoriums, the average rent price has changed over the last sixteen months. What’s happening to the rental prices in the industry?

Keeps Going Up

The average rent price around the country has gone up. That isn’t the most unusual thing in the world. Many places have a standard increase to go with the jump in cost of living each year, with small incremental ticks with each yearly renewal or newly signed lease. However, it’s not quite that simple. Some places have predicted large jumps. CNBC stated that “rent is forecast to be even higher this year than it would have been if the pandemic had not occurred.”

The average rent price around the country has gone up. That isn’t the most unusual thing in the world. Many places have a standard increase to go with the jump in cost of living each year, with small incremental ticks with each yearly renewal or newly signed lease. However, it’s not quite that simple. Some places have predicted large jumps. CNBC stated that “rent is forecast to be even higher this year than it would have been if the pandemic had not occurred.”

Thanks to ApartmentList’s handy chart, one can see the very drastic spike in the cost of rent over the past few months alone. The country’s average jump of price is around an 11% but it can be higher depending on the city. In Atlanta alone, the price increase was at 17%, while in Phoenix it was 21.6%.

Why

Thanks to ApartmentList’s handy chart, one can see the very drastic spike in the cost of rent over the past few months alone. The country’s average jump of price is around an 11% but it can be higher depending on the city. In Atlanta alone, the price increase was at 17%, while in Phoenix it was 21.6%.

Why

There could be many reasons that rent has spiked. Now that people are moving and landlords are once again allowed to evict those who need to vacate their premises, it could be landlords are looking to soften the blow. According to Business Insider, landlords may be “making up for lost time.” However, a more logical explanation was also put forward as well, relating to the simple issue of supply and demand, saying that they “never built enough apartments anyway” and now the country must deal with the shortfall.

There could be many reasons that rent has spiked. Now that people are moving and landlords are once again allowed to evict those who need to vacate their premises, it could be landlords are looking to soften the blow. According to Business Insider, landlords may be “making up for lost time.” However, a more logical explanation was also put forward as well, relating to the simple issue of supply and demand, saying that they “never built enough apartments anyway” and now the country must deal with the shortfall.

Because of the high prices, despite the end of stay-at-home orders, increased health across the country and people going back to work, not nearly as many tenants are out and about and moving. While landlords are ready for new tenants to come in and make up for the lost year of rent, it seems they may have to wait even longer in order to fill the empty spaces, so long as the dues are this high.

What You Should Prepare For

On the bright side, rental prices tend to be seasonal. Now that fall is up and coming, average rent may take a small dip. Back in 2018 and 2019, rent prices followed the trend of dipping in the autumn, and allowing more renters to move around with more ease. Peak season has always been the summer, with it coming back down as kids go off to school and parents go stationary for the educational year. As the leaves change across the country, maybe there too will be a bit of ease around the rental prices.

More and more, 2021 moving into 2022 isn’t looking to be the best and brightest for the rental housing market. While some landlords may be cheering for new profits as the prices go up and the moratorium calms down, others are shifting in worry as they find fewer and fewer tenants who can afford the latest trends. While the cause of the new heights for rent may be understandable, it may also help if it takes a hit with the autumnal shift.

Because of the high prices, despite the end of stay-at-home orders, increased health across the country and people going back to work, not nearly as many tenants are out and about and moving. While landlords are ready for new tenants to come in and make up for the lost year of rent, it seems they may have to wait even longer in order to fill the empty spaces, so long as the dues are this high.

What You Should Prepare For

On the bright side, rental prices tend to be seasonal. Now that fall is up and coming, average rent may take a small dip. Back in 2018 and 2019, rent prices followed the trend of dipping in the autumn, and allowing more renters to move around with more ease. Peak season has always been the summer, with it coming back down as kids go off to school and parents go stationary for the educational year. As the leaves change across the country, maybe there too will be a bit of ease around the rental prices.

More and more, 2021 moving into 2022 isn’t looking to be the best and brightest for the rental housing market. While some landlords may be cheering for new profits as the prices go up and the moratorium calms down, others are shifting in worry as they find fewer and fewer tenants who can afford the latest trends. While the cause of the new heights for rent may be understandable, it may also help if it takes a hit with the autumnal shift.

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The nation’s most trusted tenant screening for real estate agents, landlords, and property managers. No cost background checks available 24/7.

©2018 ApplyConnect. All rights reserved

ApplyConnect marks used herein are trademarks or registered trademarks of applyconnect.com. Other product and company names mentioned herein are the property of their respective owners.