Rentals are soaring across the US to unsustainable levels. Gone are the days when people stuck to the tradition of spending less than one week of income on housing. According to a Rent.com report, the national average for one-bedroom apartments is up 24.4% over the past year to $1,684, and two-bedroom units are up 21.8% to $1,997. The data was compiled in February and released this March.
Those interested in living in a more desirable area should expect to pay significantly more. The following cities experienced the sharpest annual increases in one-bedroom units:
- Long Beach, CA (+56.7 percent)
- Chandler, AZ (+50.8 percent)
- Amarillo, TX (+46.6 percent)
- Huntington Beach, CA (+44.9 percent)
- Jersey City, NJ (+43.6 percent)
- Orlando, FL (+42.4 percent)
- Irvine, CA (+39.2 percent)
- Austin, TX (+36.9 percent)
- Portland, OR (+34.2 percent)
- Mesa, AZ (+30.6 percent)
The increase in two-bedroom units over the past year:
- Fresno, CA (+71.3 percent)
- Huntington Beach, CA (+55.2 percent)
- Little Rock, AR (+45.0 percent)
- Salt Lake City, UT (+43.2 percent)
- Augusta, GA (+38.7 percent)
- Albuquerque, NM (+38.3 percent)
- Raleigh, NC (+38.2 percent)
- Miami, FL (+36.3 percent)
- Fremont, CA (+34.6 percent)
- San Diego, CA (+34.3 percent)
This does not factor in the rising price of utilities due to the energy crisis or the rising cost of simply putting food on the table. Inflation within the rental market became an issue in 2020 and is continually rising. People are paying so much of their income to landlords that the American dream of homeownership is outlandish to many hardworking people.
The post Red Hot Rentals first appeared on Armstrong Economics.
