Alert : Rent Prices Rising 3 Times as Fast as Official Inflation Figures

Rents Rising 3 Times as Fast as Official Inflation Figures
Although the pandemic created some softness in the rental market last year, 2021 brought the fastest rent growth we have on record, and it is only a matter of time before rent inflation measured by the government catches up to the staggering prints observed by Apartment List. What is striking, is that in many individual cities across the country, rents have now surpassed the level where they would have been if rent growth had not been disrupted by the pandemic. And in markets like San Francisco and New York where “pandemic pricing” is still in effect, prices have turned a corner and are now rebounding. At the same time, booming markets like Boise continue to see prices climb. More broadly, rental inventory across the nation remains tight, and as vaccine distribution continues to gain momentum, we may be seeing the release of pent up demand from renters who had been delaying moves due to the pandemic. Whereas last year’s peak moving season was halted by the pandemic, this year’s seasonal spike appears to be making up for lost time.