A 5.5% increase YOY doesn’t seem that extreme in times when incomes keep pace with cost of living, but I don’t think that is what the average renter has experienced in the last decade. I think a large cohort actually lost ground.
That’s what I find significant. I know that rents are normally a function of supply and demand, but I can’t help but think that there is a little wiggle room for rents to come down. I know that many properties are being held indefinitely at this point, but I can’t help but wonder if they will eventually become rentals and increase supply. I also wonder if demand will stagnate as 20-30 somethings opt to live at home in a down economic cycle and lower income households make do living in clown houses illegal immigrant style or simply move.
