Perfect Storm for Renters As Costs Zoom

Once pandemic rent freezes in big cities were lifted what did tenants expect, no increases forever? Some locales are reporting rent hikes as high as 40% while others are thankful it’s only 10% for them. Any relief in 2023?

Don’t count on it, at least, until next June, says the Federal Reserve Bank of Dallas. Middle-income and younger workers, says Fox Business, are feeling the biggest pinch, although it can spell outright disaster for those renters who are trying to get by on the national median income of $31K.

So, is this the time to buy a starter home? Maybe, maybe not since the “experts” and their advice right now is literally if proverbially “all over the lot.”. While the Fed of NY suggests rents will continue to surge by 11.5%, home values aka costs will “moderate”, i.e., “only” increase by as much as 7% by next April. But, that’s New York. Many other regional Feds are forecasting the asking price for homes in their areas will level off if not be cut; some realtors seeing the market dramatically slowing down last month say by as much as 10%. Meanwhile, mortgage interest rates that can last from 15 to 30 years are widely expected to keep rising as, perhaps eventually up to 8% or more, as the Fed keeps increasing its own lending rate to banks to fight the nation-wide inflation now weighing upon the economy & threatening to throw it into a deep recession. What to do? It’s a Perfect Storm or Catch 22 for too many of the most vulnerable.

Davd Soul