Kim Drotar, a teacher in public schools, rents an apartment in St Louis. She doesn’t always have the best neighbors.
She says, “They’re 19 and 20 years old and throw parties at my door in the middle the night, and, you know? Just to be jerks.”
Drotar is a single mother with a 5th grade daughter. Drotar has been looking for a house that she can afford.
“I want a place where she can ride her bicycle and make friends with neighbors, play with the children and have fun.
She keeps being outbid by those who make offers. With mortgage rates rising sharply, she claims she has been priced out completely. It’s becoming increasingly difficult to continue renting.
She says that her rent has increased 22% this year. It’s becoming harder and harder for me to save money for a downpayment.
Redfin has released a new report that shows that the national rents for available apartments increased 15% compared to a year ago. The median rent for an apartment was listed at $2,000 per month, which is the highest level in the country.
Rents have risen more than 30% in Austin and Seattle as well as Cincinnati. Los Angeles’ median rent is $3,400. It’s up 32% on last year, even in previously affordable places like Nashville, which is now at $2,140.
Redfin’s chief economist Daryl Fairweather stated that housing is becoming less affordable for all income levels. According to Fairweather, after the last housing crisis, there wasn’t enough housing built for a decade. This lack of supply is what drives up home prices, making it more difficult for Drotar and others to afford a home.
Fairweather claims that homebuilders have built fewer houses in the decade beginning in 2010 than any other 10-year period since 1960. “So it will take at least another decade for us to get out of this hole. She suggests that states could change zoning laws to allow smaller, more affordable houses to be built closer together.
In the meantime, renters are staying put when they’d rather own a house. This helps to keep prices and demand up in the rental market.
Fairweather says that rents are rising just as fast than home prices.
Redfin tracks the asking prices of vacant rental units. It does not necessarily mean that rents are increasing for everyone renting. The data may be biased in certain cities because it does not include some small-time landlord listings.
The average rent Americans pay aEUR”, not just the price increase for new listings. This is higher than the usual rate of inflation.
It is expected that there will be an increase in rental demand from people who want to buy a house. As rising interest rates push more homebuyers from the market, mortgage applications for a house purchase are 21% lower than last year.
