Rents and 'sticky' inflation Rents and 'sticky' inflation http://www.federatedinvestors.com/static/images/fhi/fed-hermes-logo-amp.png http://www.federatedinvestors.com/daf\images\insights\video\rent-due-small.jpg October 18 2022 October 18 2022

Rents and 'sticky' inflation

How climbing rents keep inflation elevated.
Published October 18 2022
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Rents drive shelter costs, a dominant component of Consumer Price Index. Shelter is 32.29% of Consumer Price Index. Rents continue to rise as: more people opt to live alone, high prices, limited supply and rising mortgage rates make home ownership less affordable, typical 6-month to 1-year leases lock in higher rents even as home prices moderate. Median national asking rate for apartments. $1,630 in May 2019, $1,650 in May 2020, $1,738 in May 2021, $2,002 in May 2022. An 8% increase from 2019 to 2021. A 24% increase from 2019 to 2022. New apartment construction nationally. 353,000 in 2019, 368,000 in 2020, 423,000 in 2021 and an estimated 420,000* in 2022. States with the highest rent (median rent estimate). $2,537 in Hawaii, $2,201 in California, $1,967 in Massachusetts, $1,818 in New York, $1,748 in Washington. Information sources: Bureau of Labor Statistics Data, June 2022; Pew Research Center, January 2022; Real Estate Witch, May 2022; Redfin News, June 2022; Statista, April 2022; Stessa, April 2022.
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