The Numbers Are In: Rent Really Is Too High

The Numbers Are In: Rent Really Is Too High Spencer Platt via Getty Images

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We’ve all experienced the impact that inflation has had on our wallets. While it might be pretty easy to put off some purchases until consumer prices come back down to earth, there are some things we have to buy.

For most of us who rent a home, rising prices have become unavoidable. In August, the average rental cost was a whopping 12.3% higher than it was the same month last year. That’s significantly higher than the overall 8.3% inflation rate for all types of consumer goods.

Experts say the ongoing rent hike is fueling the inflation numbers, but some other economic indicators don’t paint a rosy picture for American consumers:

  • The Federal Reserve has already hiked interest rates four times this year — with more increases almost certain to follow.
  • Mortgage rates are at their highest level since the 2008 housing crisis.
  • Even the Fed’s actions and a decline in gas prices weren’t enough to stave off inflation in August.

Nevertheless, some economists are cautiously optimistic that we’ve reached peak inflation. That doesn’t mean the pain is over, though.

As rising rates cause would-be home buyers to reconsider applying for a mortgage, that means more people will be looking for a rental property, which in turn could send rent prices soaring even higher.

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