What's Driving the Huge U.S. Rent Spike?

[Klaralven]

The current spike in rents is most pronounced in places like the Phoenix metro area or Boise, where rents for two-bedroom apartments have climbed 15% and 21%, respectively, in the last year, per Zumper data. But those markets aren’t unique. It’s a nationwide phenomenon that’s having a significant impact on housing markets, affordability and access.

Every one of the nation’s 100 largest metro areas has seen month-over-month rent growth over the last five months, according to Apartment List economist Christopher Salviati — a phenomenon he’s never seen before. Data from Zillow shows a similar national increase, up an average of 11.5%, or $200, compared to last August.

https://www.bloomberg.com/news/articles/2021-10-05/tenants-struggle-with-red-hot-u-s-rental-market

[marble falls]

1. Greed.

[jimfields33]

12. Well some, but many landlords had to go without rent payments for

over a year. Some states are trying to get money to them but many are slow and negligent.

[OAITW r.2.0]

2. The next layer of insecure Americans. Landlord with small, but needed, revenue who have to boost

rentals to make mortgage-tax obligations.

[quaint]

11. Along with huge insurance premium increases.

[qazplm135]

3. Probably landlords

Trying to recoup lost money.

[niyad]

4. GREED

[abqtommy]

5. That's right. Fascists always need financing for their lies, rafucking and

insurrection!

[MiniMe]

6. They are trying to make up for not being able to evict people for the last year or so

The landlords have been having to put up with people not paying them. They need to make up for that.

[PortTack]

7. Visited my sis and BIL recently. One convo we had was about their unruly neighbors

Much to my surprise, in this very upscale burb in the Chicago area, the entire area is suffering corporate buys of single family homes, as was the case with these neighbors that are renters. I don’t have anything against renters, was one myself once, but if there not ruled by the HOA or corporate doesn’t have any rules..this s not a good outcome.

If the corporate world is involved, they will charge sky high rents and run the properties into the ground!

[Hoyt]

8. Suspect rental assistance that didn't ge to landlords has a lot to do

with it. But rent has increased every year long before COVID.

[onecaliberal]

9. A lot of people were evicted. Greedy people are taking advantage.

[Chainfire]

10. The wealthy are doing their best to cornor the market on rental properties.

When a family is evicted, the property is more likely to end up in a corporate portfolio as a permanent rental than in the hands of another family. If the man says the rent goes up, the rent goes up. It is Capitalism at its finest, the golden rule...

[joetheman]

13. Those with wealth and power actually don't others to have a chance at the "American Dream."

They were angry when Bill Clinton set about to move historical numbers below middle class into the middle class. That meant too many people of color and whites deemed of lower class were able to purchase their first home, maintain a job with fairly good salary or be able to find work almost effortlessly. If you came of age during the Clinton years you know what I mean. Until the greedy brokers and bankers found ways to shaft those trying to better their lives.

Pandemic aside, rents were escalating at ridiculous rates thanks to so much real estate being owned by foreign investors and money launderers. It it now happening in spades. They have found new ways around non-discrimination housing laws by having foreign owners raise rests that will automatically exclude most working men and women of color. A few test cases will show that rents will be lower if you are not a minority just like home sale prices for minority sellers are much lower that for whites with comparable or even less comparable homes for sale.

[joetheman]

14. Post from a fellow Duer.

https://www.democraticunderground.com/100215925557

i rest my case. Expect more of this.

[Hugh_Lebowski]

15. 'Increased Demand vs Supply' is generally why 'price increases' happen

But, that's unless there's a monopoly, of course.

I can't imagine, given that fact that I get like 10 calls a week from people wanting to buy my house right this second, for cash ... that there could POSSIBLY be any sort of 'organized plan' from 'international conglomerates' ... to buy up US real estate and jack up rents

Nothing monopolistic like that ever happens ... FREE MARKETS MAGIC YO!

[fescuerescue]

16. Surprised it took this long.

Two things:

Real Estate is exploding in price. Rent always follows.

Corporate landlords are trying to make up the funds lost from the rent moratoriums and build larger emergency cushions.