The median monthly asking apartment rents across the US exceeded $2,000 for the first time in May, with a 15% Year over Year growth in May, according to a recent report by Redfin.
How Is this Affecting Rental Prices & Demand?
What About Affordability?
For rents to continue to go up, people must be able to afford higher rent payments. Although we’ve had a big amount of inflation over the past year, we have also had a massive labor shortage. This labor shortage has boosted the median renter household income considerably, almost toe to toe in line with new asking rents.
Despite increasing rents, tenants have been able to pay rent at a very good pace and collections have been great in the multifamily sector.
I am a big fan of following data because data could tell us the whole picture of what’s happening without needing to rely on guessing, emotions, or the news.
While the stock market is unfortunately not doing well, neither is Crypto, thankfully Multifamily Real Estate has been performing relatively well. I had made a prediction a few months prior that rents were going to increase as it was obvious given what was happening with the housing market.
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