Saint-Louis is the only major American city to see its rents drop
ST. LOUIS, Mo. – Mortgage and rent payments have increased across the country over the past year. Redfin, a technological real estate company, reports that rents have increased by 13% and mortgages by 17%.
There is an outlier among major US cities that goes against this trend. Rents fell 4% in Saint-Louis, and it was the only metro to experience a drop in rents in October compared to the previous year.
Other major cities with rents growing more slowly than the national average are Chicago at 11%, Pittsburgh at 7% and San Francisco at 7%.
Rents are up 30% in some cities. They are located in Florida, Washington State, Oregon, Texas and New York.
Top 10 metropolitan areas with the highest 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, NY (31%)
- New York, New York State (31%)
Rents for US single-family homes jumped 10.2% in September from a year earlier, according to real estate information company CoreLogic. The company excludes apartments from its single-family home rental data, although it does include condominium and townhouse rentals.
CoreLogic expects rents to continue rising at least until the end of this year, citing strong demand, weak supply of rental units and a strengthening labor market.
Recent quarterly earnings from the nation’s two largest publicly traded single-family rental homeowners underscore the favorable outlook.
It is possible that inflation will be driven up in the coming months by factors unrelated to the pandemic, such as higher rents and regular wage increases. Companies, in turn, can raise prices to offset the cost of higher compensation.
More dovish economists counter that the main cause of inflation is not a general overheating of the economy, which is normally why the Fed is tightening credit. This time, they say, the main driver has been a shift among consumers to spend heavily on goods like furniture, appliances and cars, as the pandemic has kept people at home longer and limited expenses for services such as flying, eating out, and watching movies and concerts.
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