Home News Inflation-Driven Record Rents Mean More People Are Piling In With Roommates

Inflation-Driven Record Rents Mean More People Are Piling In With Roommates

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after a long stretch Highest ever rentAmericans rent fewer apartments.

Some choose roommates, while others board with family and friends. More and more people are choosing to stay longer or move back to their parents’ home rather than pay off their mortgage. sharp rise in rent According to recent reports, many people experience it.

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Investigation.

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Home health worker Shonda Austin and her three children moved into her mother’s home in Flint, Michigan, this month after facing a 24% rent increase in Las Vegas. She hopes to return to her affordable home in Arkansas or North Carolina or elsewhere by her March, where she may be able to purchase.

“My goal is to save as much money as possible,” said Austin.

Changes in rental demand in the third quarter reached the lowest point since 2009.

Number of rental units occupied, year-on-year

Demand in Q1 2022 is

Highest since Q4 2001.

In the third quarter of 2009, after the Great Recession,

is the previous demand

As low as Q3 2022.

Demand in Q1 2022 is

Highest since Q4 2001.

3rd Quarter 2009

it was a big depression

last demand

As low as Q3 2022.

Demand in Q1 2022 is

at its highest peak

Since Q4 2001.

3rd Quarter 2009

it was a big depression

last demand

As low as Q3 2022.

According to rental website Apartment List, rents have risen 25% in the past two years, with many renters renting more than they can currently afford. in the meantime, Inflation of other commoditiesFood and energy costs are also impacting the budget people spend on housing.

“It’s a signal that rents won’t be able to sustain the levels they’ve maintained over the last few years,” said UBS analyst Michael Goldsmith. “We’ve reached a point where renters may want to exit the market.”

Third-quarter apartment demand, measured by year-over-year changes in unit occupancy, was the lowest since 2009, when the US was feeling the effects of the subprime crisis, according to rental software company RealPage. Measured on a quarterly basis, the drop in demand was the worst in the third quarter (usually prime lease season) in the 30-plus years RealPage compiled data.

Meanwhile, apartment vacancy rose to 5.5% in the third quarter, up from 5.1% in the previous quarter, according to property data firm.

Co-star.

The apartment rental market appears to be cooling after the boom that began in early 2021. After the introduction of the Covid-19 vaccine, many people, especially young people who were living with their parents, rushed to rent in cities across the country. That boosted demand for apartments and put upward pressure on rents.Some rental apartments Participated in bidding war.

Record-high home prices have slashed many Americans who wanted to buy starter homes, making them addicted to the rental market.

A series of interest rate hikes has spilled over into the US economy and is expected to rise further. The WSJ analyzes the numbers hitting American wallets this year and beyond. Photo: Elise Amendola/Associated Press

An increase in new apartment supply this year in large markets such as Phoenix and Dallas may have contributed to a decline in overall demand. It may be contributing to the decrease in demand.

Leases also typically ease during the colder months, but analysts say the fall in demand that started earlier this year is now stronger than expected.

“The spring and summer leasing seasons have completely collapsed,” said Jay Lybik, CoStar’s national director of multifamily research.

However, asking rents remain near record highs despite the recent drop in demand. Nationwide, asking rents are starting to fall slightly month-over-month and are still up more than 6% year-on-year, according to several data sources. is rising to In Charleston, South Carolina, the rent is 14% higher for him than it was a year ago, according to Apartment List.

More people are choosing to live with friends and family for free to escape record high prices, according to a survey conducted by UBS in September. Eighteen percent of U.S. adults surveyed said they had lived rent-free with someone else in the past six months, up from 11 percent in the same period a year ago. This was the highest percentage of adults living rent-free with friends and family since UBS began asking her in 2015.

Other renters are finding roommates or splitting rent with family members. Bailey Byram, a 27-year-old bartender in North Charleston, South Carolina, said her sister moved in with her into her two-bedroom rental home. Byram said her sister was having trouble finding her place and she recently lived with her parents.

Kim McCann and her husband, Jonathan, of Birmingham, Alabama, moved because their landlord wanted a significant rent increase.


Photo:

Kim McCann

“She has a good job… but renting a house alone would cost her $500 to $600 from her budget,” Byram said.

Some landlords are resisting sharp rent increases. Last year, Mr. and Mrs. Kim McCann rented a spacious mezzanine apartment in downtown Birmingham, Alabama, for $2,800. In July of this year, the landlord texted McCann that he was raising the rent by $900 a month due to an “explosion” in local real estate demand.

Instead of paying $3,700 for the same apartment, McCann and her husband decided to move in August.Loft was on the market until at least this week, according to the list above.

Jiro,

And the asking price has been reduced twice.

“Fingers crossed other landlords will soon be sane,” McCann said.

Letter to Will Parker [email protected]

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