Rents are rising at a rapidly ‘evil’ rate as tenants are seeing the biggest increase in 20 years

You don’t need a crystal ball to predict that housing costs will likely continue to rise – as the latest consumer price index seems to predict.

In September, the shelter index rose 0.4% যা about one-third of the overall 0.4% increase in the price of all goods and services মাসে last month.

More specifically, homeowners equivalent to rent-home owners increased their home rental -0.4% increase, the fastest one-month increase since 2006. .

Familiar words?

Ian Shepherdson, chief economist at Pantheon Macroeconomics, thinks so.

“More bizarrely, initial and owner-equivalent rents rose by an average of 0.44% by weight in September, the largest increase since June 2006,” Shepherdson said. “It may be an overshoot after a relatively small increase, but we can’t dispel the notion that the fundamentals – faster home price increases, more aggressive homeowner prices, lower enrollment and faster wage increases – are driving the trend.” ”

Richard Moody, chief economist at Regions Financial Corporation, also noted that rents, seeing their biggest jump since June 2006, were “somewhat of a bad money”.

The end of the nationwide eviction moratorium in September has probably put ward upward pressure on rents.

From 1955 to 1998, real home prices rose almost 100-fold

Since the onset of the epidemic, inflation-adjusted home prices have risen 11.8% annually, MarketWatch columnist Rex Notting reports. This means that real home prices have risen almost 100 times faster than in 1955 to 1998.

“Housing inflation was delayed for a pop, and it popped in September,” Jefferies economists Aneta Markoska and Thomas Simmons said in a note on Wednesday.

This is also because the Bureau of Labor Statistics sampling housing data from six different panels every six months. This is six months behind the housing data included in the monthly CPI report.

Will Compernol, a senior economist at FHN Financial Markets, said another possible explanation for last month’s rent increase was that “suburban demand is recovering after last year’s relocation to suburbs and rural areas.”

Others say the housing market stands against two ongoing barriers: low inventory and high costs for labor and materials. Robert Dietz, chief economist at the National Association of Home Builders, said “the rising cost of shelter, which is a significant component of overall inflation, is the result of high construction costs and inadequate enrollment.” “Policymakers can fight inflation by helping to increase housing supply, especially by finding ways to reduce construction regulatory costs.”

Some economists believe that housing prices will continue to rise but eventually many people will stop as soon as they return to their pre-epidemic lives.

The National Low Income Housing Coalition did not immediately respond to a request for comment.

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