Rental prices rise 4 times faster than wages in the US in the last 37 years

Average rental price increased by 149% over a period of 35 yearswhile during that same time, the income of Americans only increased 35%, according to a study published by Clever Real Estate.

Although renting is still cheaper than buying a home, for most households across the country, the study found that increases in rental prices actually outpaced home price gains in seven metro areaswhere the change in rental prices is 92% greater than the change in house prices since 2000.

Although the study took into account the period between 1985 and 2020, experts point out that inflation, which in May it reached 8.6%and the period after the covid-19 pandemic have only further exacerbated the problem.

Since 2000, according to the study, the average rental price has exceeded the rate of inflation by 29%. During that time, the rental rate went up 90%, while inflation went up 70%.

Millennials with fewer opportunities

Since rental prices exceed wage earnings, the study showed that millennials have less disposable income than previous generations to save for a down payment.

According to the findings, millennials who have paid the median rental price every year since 2010 have spent about $129,420 on rent over the past decade.

In urban areas that often attract young people, analysts found that rental prices have doubled in half of the 50 largest citiesincluding San Francisco (49%), San Diego (40%), and Miami (33%).

New York faces stabilized rent increase

Just this week, the New York City Rent Regulatory Board voted to increase incomes for millions of people in rent stabilized apartments.

were approved two rate increases: A 3.25% increase for one-year leases and a 5% increase for 2-year leases.

The Legal Aid Society, which had called for a rent freeze, called the increase a “shameful vote, likely predetermined, to raise rents for the most vulnerable.”

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