Rental prices in the US, 25% higher than before covid-19, but do not reach an average of $2,000 dollars

During May, rental affordability continued to be a challenge for American renters, with the median price continued his record breaking streakreaching 26.6% more than in the same month in 2019, before the start of the covid-19 pandemic.

The figures published this Thursday in the Realtor monthly report indicate that for 15 consecutive months a new maximum was also reached of $1,849 dollars.

However, still they have not reached the projections in which they were expected to exceed $2,000.

In addition, given that the recovery in the supply of homes for sale is forecast to will accelerate in the second half of the yearan increase in first-time homebuyer opportunities could further reduce pressure on rental demand and prices.

The report notes that all unit sizes posted double-digit rental price increases year over year.

The rise occurs at a time when inflation is further aggravating the pressure on household budgetsas higher rental costs and regular expenses continue to outpace revenue growth.

These are the price increases registered in the last report, compared to the same month of the previous year:

– Studies
Increase: 16.9%
Average price: $1530 dollars

– One-bedroom apartments
Increase: 15.2%
Average price: $1,708 dollars

– Two-bedroom apartments
Increase: 14.8%
Average price: $2,076 dollars

Lack of supply increases pressure on prices

A key factor driving continued rental growth is a lack of supply, as rental vacancy rates, already trending downward, have plummeted during the pandemic.

These trends are magnified in the larger cities they tend to attract younger residents, many of whom are in the early stages of their careers and seeking flexibility in their living situations.

Realtor’s analysis highlights the relationship between rental availability and prices in major markets.

At one end of the spectrum, the major tech hub of Boston occupied the fifth highest rent in the country at $2,889 in Mayafter posting a vacancy rate of just 2.4% in the first quarter of 2022.

Conversely, renters may find more affordable options in relatively smaller and less densely populated secondary metropolitan areas.

Of the 10 areas with the highest vacancy rates, nine were among the rental markets with the lowest prices in Mayled by Indianapolis, with a significantly lower overall rent of $1,275 and a higher vacancy rate of 10.9% than Boston.

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