Rents Skyrocket at Highest Rate in almost a Decade
The Consumer Price Index (CPI) was released by the Labor Department last week. An analysis by Market Watch revealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That’s the strongest yearly price gain since 2007.
This coincides with a report released earlier this month in which AxioMetricsannounced that rents are continuing to increase in 2016. The report revealed:
- There was a 3.7% increase in effective rents in the second quarter of 2016 as compared to the same period last year.
- That the effective rent growth this quarter compared to last quarter was 2.3%.
- Annual effective rent growth was positive in 49 of the top 50 markets, based on number of units. Only Houston was negative, at -1.4%, as the fallout from energy-industry job losses and excess construction continues.
Here is a graph to illustrate the rate of increase over the last several years:
With rents continuing to rise and mortgage interest rates still at historic lows, let's meet up today to determine if you could turn your monthly rental cost into a home of your own.