Gas groceries and now rent surging rent prices are at an
all time high June saw the biggest monthly increase in
36 years, not even a one bedroom, it's 400 square fe
studio. So as soon as you walk in, you're walking int
a bedroom, supposedly a dining area and then just a
small kitchen and bathroom. Las Vegas resident hope
gallegos and her husband called the studio apartment
home. When we first moved in, our contract was 8 56.
And then soon as um The renewal is coming in Septem
we got a notice for it to go to 1200 nationally, rent
has increased across the board. The latest Labour
Department consumer price index report found the rent
index rose .8% in June over the previous month. Year t
year, rent is up 5.6 Gallegos has seen the impact fi
hand. You know, usually it's $20, 50 bucks and it goes
on like year after year, but $300 for 400 square feet,
no washer dryer, no security, no. Senior housing
economist chris salvi adi of the online marketplace
apartment list says the hikes have been going on for a
while. It isn't necessarily surprising. So, we've been
seeing in our rent index prints have been increasi
really rapidly over the course of the past year and a
half. What's behind the skyrocketing cost of rent salvi
ari says there's a really strong demand for rental
but there aren't that many units available or being
built apartment list has seen a drop in new rental
listings before the pandemic, a vacancy rate around
6-7% was Sort of normal and now we're seeing it down
around 5%. That has used a little bit but it fell as
low as 4%. Supply chain issues delays in the
construction pipeline and an increase in material costs
have led to housing and rental shortages. Some
potential first time buyers are also delaying
purchasing a home with mortgage interest rates high an
fewer choices. Here's what that looks like around the
country. In New York City, rent for one bedroom
averages nearly $2100. About a 27% increase from last
year in Chicago rent bumped up about 10%. In San
Francisco about 7.6%. Some renters are renewing leases
even with steep increases becau it may be cheaper to
stay put. Others like Jocelyn Mallenco nico of Boyton
beach florida are discovering the cost of relocating
was in the same community and we still got charged
$1200 just to move down the block. Basically on average
moving costs are 9% higher this year than last.
According to hire a helper still, there may be hope
experts predict that while rents will continue to
increase, they'll be at a much slower pace. You know.
Again based on our data that we are going to see things
start to cool off in the C.P.I in the coming months but
that will probably be you know, maybe sometime in the
fall and veronica this story hits close to home. I live
in Chicago and it costs about $100 more a month for me.
Which is usually roughly around $20. And where you are
in Atlanta according to apartment list, that increase
in rent is about 12.6% wow. Anyway, you look at this,
it is just tough. And uh you see the people that you're
interviewing and and you can really really feel their
pain. Yeah. I mean obviously this has to do with supply
and demand as you've explained in your story. But do
you have any advice for renters that are struggling
right now That's a great question. If you are a renter
and for some reason you're struggling with paying r
one advice would be to have a conversation with your
landlord. Perhaps there's a way to negotiate it,
especially if you've lived in your unit for years.
Another advice is if you can push back moving in the
fall or winter time when rents are usually cheaper than
in the summer veronica. That's some great advice.
Alright, cat, thank you so much for that. We appreciate
it.