Average rents in the U.S. climbed 14% in 2021 and there will not be more relief in 2022.
Americans renters can expect a 10% jump in prices in 2022, according to a report on Jan. 10 from the Federal Reserve Bank of New York. The report cited inflation, household finance, and the labor market as reasons for the jump.
During the pandemic, there was sharp growth in second-tier rental markets, as Americans sought cities where their money initially would go farther, thus driving prices up. Many renters favored moving to more suburban areas over densely populated areas like cities.
December marked the sixth consecutive month in which rent-price growth for 0–2-bedroom units reached double digits. The end of 2021 saw a 10.1% year-over-year growth in median rent prices across all types of units. Compared to 2020, the growth in rent prices overall was only 1.9%.
The Financial Samurai predicts that this increase in rent prices will…