It’s no secret that housing costs have been soaring across the United States, but now rents have risen above $2,000 a month for the first time.
A new report from Redfin shows that rents are up 15% from last year. And now, the median price for an available rental has risen above $2,000 for the first time ever.
Daryl Fairweather, a chief economist for Redfin, says that not enough homes were built in the decade after the housing bubble burst. She believes the lack of supply of homes is making it unaffordable for people to buy, thus driving up rent.
More people having to rent is driving up the cost of rental units. “Rents are going up just as fast as home prices,” she told NPR.
Fairweather predicts that it will be another decade of building new homes before things start to level out.
Another factor is rising interest rates pricing those wanting to buy out of the market. The outlet reports that mortgage applications are down 21% from a year ago.
