NS. LOUIS, Mon. – Mortgage and rent payments soared across the country last year. Redfin, a tech real estate company, reports rents rose 13 percent and mortgages rose 17 percent.
There is one outlier among American cities that opposes this trend. St. Louis rents fell 4 percent, and it was the only subway to see rents declined in October year-over-year.
Other major cities whose rents are growing more slowly than the national average are Chicago with 11%, Pittsburgh with 7% and San Francisco with 7%.
In some cities rents have increased by 30%. They are located in Florida, Washington State, Oregon, Texas, and New York.
Top 10 metropolitan areas with the fastest rising rents
- West Palm Beach, Florida (36%)
- Fort Lauderdale, Florida (36%)
- Miami, Florida (36%)
- Seattle, WA (32%)
- Jacksonville, Florida (32%)
- Portland, OR (31%)
- Austin, Texas (31%)
- Newark, New Jersey (31%)
- Nassau County, New York (31%)
- New York, NY (31%)
US single-family home rents rose 10.2% year over year in September, according to real estate information company CoreLogic. The company excludes apartments from its single-family home rental data, even though it includes condos and townhouses.
CoreLogic assumes that rents will continue to rise at least until the end of this year, citing strong demand, low supply of rental apartments and a growing labor market.
The latest quarterly results of the two largest listed owners of single-family homes for rent underscore the favorable outlook.
It is possible that inflation will be driven higher in the coming months by factors unrelated to the pandemic, such as higher rents and steady wage increases. Corporations, in turn, can raise prices to offset the cost of higher wages.
More cautious economists counter that the main cause of inflation is not a general overheating of the economy, which is why the Fed usually tightens lending. This time around, they say the main factor has been a shift in consumers who are spending a lot on goods like furniture, appliances and cars as the pandemic has kept people at home longer and spending on services like flying, eating, and visiting movies is limited and concerts.
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