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Rents Surge By Another Record-breaking Led By A Big Jump In Miami

The cost of rent continued its meteoric rise in April, marking the 13th month in a row of record-setting increases for single-family units.

According to a report of CoreLogic, a real estate data firm, in a study from April 2022, year-over-year, following the 20 principal national metro areas, where the rent price is increasing the most. Listing the 10 higher, as a comparative effect. 1. Miami 40.8%. 2. Orlando 25.8%. 3. Phoenix 17.8%. 4. San Diego 17.3%.  5. Las Vegas 17.0%. 6. New York City 8.4%. 7. Washington D.C., 8.2% (tied). 7. St. Louis 8.2% (tied). 9. Philadelphia 7.8%. 10. Honolulu 7.7%.

Nationally, another month, another record for U.S. single-family rents, which jumped 14% year-over-year in April, marking the 13th period of record-breaking annual gains.

Supply shortages and a strong job market are driving prices up, according to CoreLogic. “We expect single-family rent growth to continue to increase at a rapid pace, throughout 2022.” CoreLogic said in the statement.

Among large metro areas tracked, Miami posted the biggest gain- Almost 41%, that’s about seven times the growth rate of 5.6% back in April 2021 in the city. Meanwhile, East Coast metros including New York City, Philadelphia and Washington, D.C., posted some of the smallest increases.

A shortage of rental properties paired with strong wage gains due to a tight labor market are major contributors to a soaring cost of rent, CoreLogic said. This all-fuels high inflation rates, which are at levels unseen since the early 1980s.

According to the Labor Department, the inflation rate in April was 8.3%. In May it was even higher at 8.6%. Such high inflation rates are hitting homebuyers as well, not only are home prices historically high, the FED is aggressively raising interest rates to quiet inflation. This strategy in the long run should bring home prices down- but in the meanwhile, buyers must live with increasing mortgage rates, nearly 6%, plus astronomical home prices. There is a period in this housing market where buyers could be in a rental unit instead, thus limiting supply and driving rents up even higher.

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