US rents are soaring. Rent data for the past two months show no sign yet of the usual seasonal dip at this time of year, following peaks early in the summer, when many lease renewals come due.
A Zillow Group Inc. index based on the mean of listed rents rose 11.5% in August from a year earlier, with some cities in Florida, Georgia and Washington state seeing increases of more than 25%.
Since the start of the pandemic, the median rent for a two-bedroom apartment has soared 13.1% to $1,663, Zumper data show.
Its not great news if you're looking to rent in New York City. For the New York market, landlords are raising rent prices as much as 70% now that people are flooding back into the city as offices and entertainment venues open up. In July, the median asking rent surged to $3,000, compared with the pandemic low of $2,750 in January 2021, data from StreetEasy showed.
It’s not just rentals. Prices for single-family homes rose almost 20% in July from the prior year, the largest increase in more than 30 years.
Short Squeez Takeaway: The Dallas Federal Reserve predicts that the official rent index from the Bureau of Labor Statistics will increase to 6.9% by year-end 2023, which would be the highest in more than 30 years. Some would say inflation is still transitory but looks like it's here to stay.