(PatriotWise.com)- According to the Epoch Times, the cost of renting a home is increasing in the United States as people return to their pre-COVID jobs or find new jobs in the metro areas that were largely abandoned during the pandemic. The sudden increase in people working in offices in America’s cities has resulted in a rise in demand for rental apartments, which has sent prices surging.
Experts say that if the increase in rents in metro areas continues, it could result in more persistent and damaging inflation, proving the central bank’s claims that inflation is only temporary wrong.
During the pandemic, the cost of renting apartments in metro areas dropped dramatically. New York saw one of the most shocking reductions in rent, with landlords even offering one or two months free to prospective renters. In June, however, things started to change.
The median rent nationally increased by 8.4% year-over-year, according to data from Apartment List.
The Times reported that the housing market has returned to pre-pandemic levels in most places across America, with New York seeing a 4% increase in rental prices – something that experts weren’t expecting to happen until the end of the year or perhaps even next year.
Furthermore, the Consumer Price Index increased by 5% in May compared to last year.
The Epoch Times also reported how rent inflation sat at around 3% annually before the COVID-19 pandemic and then dropped to 2% in 2020. But with the rate going back up again to 3%, it risks reaching higher levels and having a huge effect on the nation’s workers.
How are people supposed to be able to pay their rent after millions of Americans are backed up with debt?
Not only that, but with house prices in the cities increasing, more people are relying on the rental market than ever before. The median price of a home in May this year was up 23.6% over 2020.
If people can’t afford to rent or buy, then what are they expected to do? Cross their fingers and hope that Janet Yellen is telling the truth when she says things will eventually be fine?