Data from Zillow shows that Rents in America have increased by 24% over the last 18 Months. Meanwhile data from the BLS shows that Wages have only increased by 8% in that same period – 3x Lower.
This differential means that Americans cannot afford the prevailing Rental Rates. And as a result tenants in metros like Phoenix, Orlando, and Dallas are getting evicted at near record rates. Wall Street Landlords jacked up the rent too much in these cities and now them and tenants are paying the price.
Of course – it’s not only the Landlords fault. The US Government’s historic intervention in the Housing Market during the pandemic included an Eviction Moratorium as well as $50 Billion in direct Rental Market Stimulus. The combined effect of these programs helped cause Rents in America to surge by 24%. Now that these programs have expired, Evictions are surging.
But that’s not all. Demand for new apartment leases in America is also collapsing according to data from Real Page. This is happening at the same time that Mortgage Demand in America is also plummeting. Suggesting that the US Recession is here and worse than anticipated.
In addition – new apartment construction has also hit record levels. RealPage shows that metros like Denver, Atlanta, and Austin have a huge pipeline of apartments under construction that will help facilitate a Rental Crash in those Housing Markets.
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