Rent prices are expected to rise at record pace. The speaker breaks down the economic and social factors driving rental demand and homeownership costs, using data from November 2021 to explain why housing has become so expensive.
With the latest reports, rent prices are expected to go up 7% year over year. Now keep in mind, 2 to 3% is a typical year. A big part of this is people getting more comfortable moving back into cities. That's also where the jobs are at. The labor force is super strong. People looking for work, moving back into the cities and renting. And people are getting priced out of the home market. Your home prices are going to continue going up and it's costing more out of pocket. And people are having to cover their own closing costs and such. So many people are going to turn to renting. But with rent, you know, super low vacancies, the demand is super, super high. Still making homeownership looking like the better long term play for everybody.
