For those 44 million U.S. households who rent an apartment or a home in the U.S., inflation is going to continue pushing rent prices higher and higher.
2+ years of pandemic-fueled eviction anxiety and spiking home prices add growing inflation problem that is being increasingly driven by rising rents, and throw in a long-run affordable housing shortage that cities seem powerless to solve.
At one end are the renters who are aspiring to buy a home but have had their dreams completely dashed by high home prices and on top of that, mortgage rates are rising.
At the other end are the low-income tenants who make up the bulk of the 11 million households who spend more than half of their income on rent. And in between all of that is the "middle class" that is steadily losing ground.
According to CNBC, rent for single-family homes were 12.6% higher in July compared with the year-earlier month, and that number continues to rise.
Miami has been looking at a massive gain, with rents up nearly 31% from the year before, and Phoenix rents were up 12.2% in July.
A recent survey conducted by United Way of the National Capital Area found that in many major U.S. cities, minimum wage workers would need to clock in over 50 hours each week just to be able to afford renting a one-bedroom home.
In New York City specifically, minimum wage earners would need to work 111 hours to afford to rent a one-bedroom. The minimum wage in NYC is currently $15.
In Los Angeles, minimum wage earners would need to work 84 hours. In Chicago, 112 hours.
NLIHC data shows that for every ten low-income households, less than four homes are both affordable and available.