Survey: 60% Saw Rent Increase in Past Year
Homebuyers priced out of the market due to rising interest rates are now competing with current renters when looking for available properties.
NEW YORK – Like gas prices, housing inflation is all too real for renters right now. An estimated 60% of renters confirmed their rent was raised within the last year, according to a survey from Freddie Mac.
The survey included 2,000 American participants and was conducted in June, according to an exclusive from Yahoo Money. An estimated third of those who participated reported at least a 10% increase in rent.
Hence, three in five households have become more worried about being able to afford their rent in the last 12 months. One in five said they confirmed they will most likely miss a rent payment.
This study is released at a time with homeowners are being pushed out and forced to rent. Hence, the increase from the housing market to the rent market has resulted in competition and rent increases.
“The surge in rents that took place over the last 12 months has created even greater housing uncertainty for the most vulnerable renters,” Kevin Palmer, who’s the head of Freddie Mac Multifamily said via Yahoo Money. “Our survey shows that the national housing affordability crisis is worsening and that inflation is a key driver.”
Outside of housing, 66% of participants say they are spending more on groceries, 54% on transportation, 51% on eating out, and 49% on utilities, the survey reported.
“Inflationary pressures means consumers across the board are making difficult choices – making trade-offs on bills to pay or not being able to pay their bills at all,” Palmer added. “Consumers are much more strained than before the pandemic and surviving in day-to-day life is more expensive.”
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