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Rent rates in the US are through the roof

pte20220824004 Building/Residential, Commercial/Finance

In July, the increase was up to 8.3 percent, according to Bank of America Institute data

US metropolis Boston: Rents are rising faster than they have been in decades (Image: pixabay.com, photosforyou)

US metropolis Boston: Rents are rising faster than they have been in decades (Image: pixabay.com, photosforyou)

Charlotte (pte004/08/24/2022/06:10) –

According to data from the Bank of America Institute, rent prices in the U.S. are rising at their fastest rate in decades, and are hitting many households. http://business.bofa.com to prove In July alone this year, the average rose by 7.4 percent. For consumers with annual incomes between $51,000 and $100,000, plus 8.3 percent. Rent prices are rising more than general inflation, which is seven percent. Only those making more than $251,000 in annual income fare better with a 5.9 percent increase.

Low earners are more likely to be renters

“Significant increases in rents will have a significant impact on the financial health of households, particularly those on middle and low incomes,” the report said. Rising rents are a worrying development as they have the most direct and severe impact on household budgets. According to the Census Bureau http://census.gov About 34 percent of American households live in rental housing. For low- and middle-income households below $31,133, the U.S. average, percentage is 52.6 percent.

Households on average spent seven percent of their income on rent in 2020. Ten percent of households do not have a college degree. Projections from the Federal Reserve Bank of Dallas show that rent inflation has yet to pick up before peaking in mid-2023. A peak is expected in May with an average of 8.3 percent. “This suggests that upward pressure on rents will continue for the foreseeable future,” the Bank of America report said. However, the current increase in wages has not been able to compensate for this.

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