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US rents soar to new all-time high – RT World News


The U.S. median rental rate set a new record for the 17th consecutive month, climbing more than 12% from a year earlier

Americans continue to be battered by uninterrupted increases in their cost of living, with the latest indicator showing rental housing rates set new records for 17 straight months.

Median monthly rent in the 50 largest metropolitan areas jumped to $1,879 in July, up 12.3% from a year earlier, Realtor.com reported Wednesday. Data is based on Realtor.com listings for bachelor, one-bedroom, and two-bedroom units, which means larger apartments and houses are excluded from the median.

Although rents continue to rise at a double-digit pace, the rate of increase has slowed from a peak of 17.3% in January. The latest gain follows a 14.1% year-over-year increase in June.

“Landlords have eased the amount of rent increases, but many tenants are still feeling the pinch in their monthly budget,” Danielle Hale, chief economist of Realtor.com, said. “Even though they’ve juggled higher costs for food, groceries and transportation, rising rents and housing expenses are the biggest source of financial pressure.”


The core US inflation rate climbed 8.5% in July after hitting a 40-year high of 9.1% in June. And with the country’s central bank pushing interest rates higher to calm inflation, US mortgage rates have risen to their highest level since November 2008, making it harder for renters to buy homes.

Sales of new homes fell 29.6% year on year in July, the US Census Bureau reported on Tuesday. However, even with the slowdown in demand, the average price of a newly built home rose to $546,800, up 23% from a year earlier.

“Many tenants are simply exploited”, Hale said. “Between soaring inflation, rising gas prices, and sluggish stock and cryptocurrency markets, they have less cash on hand to spend more on housing.”

READ MORE:
US inflation picks up to 40-year high

The largest rent increases in July were in Miami, at 26.2%, and the New York area, at 25.4%. Realtor.com said there had been bidding wars for apartments and long lines for open houses in New York, where rents rose 38.3% in July, tripling to roughly the rate of increase in the surrounding suburbs. Boston, Chicago and Orlando, Fla. also saw year-over-year increases exceeding 20%.

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