Rent prices across the country were up 23 percent in the second quarter of 2022 from the same time period in 2019, as landlords in suburban counties have begun capitalizing on work-from home migrants.
The median price for rentals reached $1,314 in the second quarter, according to data released by the US Census Bureau earlier this month.
The data suggests suburban landlords are cashing in on the pandemic flight from cities, according to Axios, and that increased demand brought on by new residents is increasing prices for everyone in suburban markets.
The numbers also indicate that landlords are also hiking rents to make up for soaring inflation-driven costs by passing those costs on to renters.
Though the rent spike slowed in the early summer according to a July report in Redfin, prices continued to steadily rise and are not expected to drop even in the midst of the current recession – as the Fed increases interest rates to battle inflation, would-be buyers are pushed into the rental market and increase demand.
The numbers come as the nation continues to settle into new population landscape brought on by pandemic-era migrations.
The data reaffirms accounts renters have been telling for months of runaway rents pricing them out of home and neighborhoods they’ve long relied on for affordable housing costs.
‘It’s greed, pure, unadulterated greed. If you saw my place, you would be shocked that I’m going to be paying over $1,500 a month,’ Phoenix resident Andrew Amuso told The Guardian in May.
Amuso lived in the same apartment for eight years and was paying $900 per month before the pandemic. In 2021 his rent was increased by $276 per month, and this year the renewal for his next term quoted a price of $1,585.65 per month.
‘When I asked why they’re raising the rent, they said it’s because they can. And they’re right. They can.’
Redfin chief economist Daryl Fairweather echoed Amuso’s insight, saying landlords are increasing there rent because the demand is there.
‘They’re going to keep increasing the price to capture as much profit as they can,’ he said.
The numbers also indicate that landlords are also hiking rents to make up for soaring inflation-driven costs by passing those costs on to renters
In July Redfin released a report showing staggering spikes in metropolitan rents. It showed rent rose 40 percent in Portland, Oregon, 38 percent in Dallas, Texas, and 23 percent in Jacksonville, Florida.
Those rent prices soared even as people flocked from those cities to their neighboring suburbs during the pandemic.
Kaufman County, Texas – which borders Dallas – saw a net increase of 10,498 people between 2020 and 2021.
St. John’s County, Florida – just south of Jacksonville, saw a net increase of 16,321 people.
As the fed increases rates to curb inflation, the problem is only going to increase as home-buyers are forced back into the rental market, according to Fairweather.
‘Many potential first-time homebuyers are quickly being priced out of the market by record-high home prices and fast-increasing mortgage rates,’ he said in July, ‘They are then faced with two options: rent or move somewhere with a lower cost of living.
‘Those who choose to rent may save money in expensive housing markets in the near term, but long term, they may have to deal with continued rent increases, year after year.’
‘Those who move and buy somewhere more affordable now will be paying considerably more than if they bought last year, but will be able to build equity in the long run and ensure relatively stable monthly housing costs going forward.’
Median rent prices were 23 percent higher in the second quarter of 2022 than they were during the same period before the pandemic in 2019