Renters who were lucky enough to score a deal during the height of the pandemic last year are currently facing an uphill battle.
Harvard University’s Joint Center for Housing Studies started that the house prices are at an all-time high, Domino reported.
There are spikes all across the country; The Wall Street Journal reports increases in Tampa, Florida, and Phoenix, as well as New York and Los Angeles. It’s not just neighborhoods’ demands and low inventory that are driving the increase-there are several factors at play.
The center’s 2022 Rental Housing Report outlines the actual state of the market, which we have broken down below.
It is not Moving Forward, but Upward
Because of the amenities, those with higher incomes are opting to rent rather than buy more than ever before.
If you have a doorman and a gym in your building in the city, why move to a fixer-upper in the country? Monthly, there are fewer empty units in luxury buildings because turnover is lower.
Affixed to the Wall
Apartment vacancy rates in urban areas have never been lower than they are in 2022, despite the spring 2020 exodus.
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Indeed, it hasn’t been this low since the 1980s.
And why is that? Property inventory levels aren’t increasing, and new listings are snapped up within days (sometimes hours) of going up for sale.
Negative Reputation
There are a lot of people who are concerned about the buying market.
In June 2020, 61 percent of respondents thought it was good to buy. In July 2021, the number of respondents in support of this dropped to 28 percent.
