Housing prices are crazy high right now. Like, rent is so high that if it were a person, it’d be Seth Rogen on a Friday night.
The wildest thing is that rent and housing isn’t only higher in big cities like San Francisco or New York, it’s high EVERYWHERE. So what’s the deal?
Here’s Five Fast Facts:
- 💲💲Supply and Demand - The pandemic pushed massive amounts of people to move (*think* work from home = work from a ski resort or beach town.) Unfortunately, with all these people shuffling around there’s not enough houses on the market and many are willing to pay big bucks for what’s left over. So, prices are going up. It's simple supply and demand.
- 🧊🔥The Thaw - Many properties had to freeze rent or limit increases during the pandemic. Those limits have expired and landlords are going buck wild with the prices, increases and fees. As a result, prices for one-bedroom apartments are up as much 24% and two-bedroom apartments are up nearly 22% nationwide!
- 🏘🏡The Housing Market Isn’t Helping - January’s housing prices saw a 19.2% year-over-year increase, which is the fourth largest jump in 30 years.
- 👴👵Boomers are Partly to Blame - Baby Boomers are retiring, selling their homes for stupid high prices, taking that chunk of money, and moving into luxury rental properties with crazy high rent.
- 🏙🌆Location, Location, Location - A handful of cities including Toledo, Madison, and Minneapolis are experiencing gradual drops in rent prices (between 7-18%) So, more than ever, where you live a factor in what you’re paying for housing on a monthly basis. Yeah, that’s right: Toledo is better than you, Boston.
🔥Bottom line: This insanity doesn’t look like it’s going to stop anytime soon. If you still need to rent, experts say to try to negotiate. Landlords may be willing to lower your rent if you offer to put down a larger deposit or commit to a multi-year lease.
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