Inflation on Rental Rates
Today we’re going to talk about the effect of inflation on rental rates. If you are a renter watching this video you’re going to want to pay attention.
Or if you’re watching this and know a renter please forward this video because this is very important information.
Over the last year we saw one of the highest increases in rents that we’ve ever seen. Nationwide as an average we saw an increase of 11.5% in rental rates, and in some areas as high as 20 to 30% increase in rents. Why has this happened? A big reason for this is inflation. Why does inflation lead to higher rents?
The reason why is because the landlords that own the properties that you live in have experienced increases. They’ve experienced increases in the form of taxes, in the form of homeowners insurance, in the form of repairs and maintenance on your property, everything from if your hot water heater breaks down, that’s more expensive. Getting your roof replaced is more expensive. Getting people out to fix things, handymen, contractors is more expensive. So landlords then are forced to pass that cost on to their renters unfortunately.
As we see inflation increase, we saw the number for December come in at the hottest reading we’ve seen in a long time, 7.5%, as that number keeps increasing rents are likely to keep increasing this year. If you’re watching this video and you’re a renter call me and we can look at how much you can qualify to buy a house, if you can qualify. And if you can’t qualify right now we will come up with a game plan together to get you there. So call, text, or email me. Once again my name is R.J. Baxter, Fairway Independent Mortgage, have a great rest of your day.