Those who can’t buy are forced to rent, and prices are skyrocketing in that market too. Thanks to largest increase in tenants ever, the rental occupancy rate reached 97% in June. When signing new leases in July, the average renter paid 17% more than the prior one.
Relief could come from more housing availability, as new construction ramps up to meet demand.
“I do think things will get incrementally better next year because the supply side will begin to catch up,” said Aneta Markowska, chief U.S. financial economist at Jefferies. “It’s very hard to buy a home at the moment but I think it’ll be a bit better next year.”
--With assistance from Nancy Moran and Emily Cadman.
This article was provided by Bloomberg News.