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Tags: rentalcosts | america | inflation | housing

High Rents Forcing Americans to Live with Parents, Roommates

By    |   Tuesday, 25 October 2022 07:02 PM EDT

Surging rental costs are forcing Americans to live with their roommates or parents, The Wall Street Journal reported Tuesday.

Following a protracted stretch of high rents, demand for rental apartments in the third quarter fell to its lowest level in 13 years.

According to Apartment List, rents have risen 25% over the past two years, pushing many beyond what they can afford. Meanwhile, inflation on essential goods, such as food and energy, is also factoring into what consumers can afford regarding rent.

"It's a signal," Michael Goldsmith, an analyst at UBS, says, "that rent can't continue at the same level it has sustained over the last couple of years. We've reached a point where renters are maybe willing to pull out of the market."

But it's not just the increased cost of everyday goods; record-high housing costs are also playing a role. The increased cost of housing forced many first-time buyers to be captive to the rental market. However, home prices are now falling on a monthly basis, according to the recent S&P CoreLogic Case-Shiller National Home Price Index.

Following a similar trajectory, and for the first time in nearly two years, rental prices are also falling on a monthly basis. Still, from a birds-eye-view, while there has been a decline in demand, asking rents have held at near record highs. Nationally speaking, while asking rents have begun a slight drop month-to-month, they are still up by 6% or more when considered annually.

In September, a UBS poll found that more people are choosing to live rent-free with friends or family. The survey outlined 18% of U.S. adults reporting they had lived rent-free with others for the last six months — up 11% from the previous year. The most recent figure reflects the highest share of adults living rent-free with friends and family since UBS began its survey in 2015.

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Surging rental costs are forcing Americans to live with their roommates or parents, The Wall Street Journal reported Tuesday. Following a protracted stretch of high rents, demand for rental apartments in the third quarter fell to its lowest level in 13 years.
rentalcosts, america, inflation, housing
309
2022-02-25
Tuesday, 25 October 2022 07:02 PM
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