Costs of almost everything are rising due to record inflation. Experts say inflation has hit a 40-year high reaching 8.5 percent. Americans feel the effects at the gas pumps, grocery stores, and at home. New data shows rental prices are up at least 20 percent all over the United States. CNN reports renters in cities like Memphis, Tampa, and Riverside, California, face a 40 percent increase in the cost of rent from last year. The number is even higher in Miami where rent prices are up 58 percent in the metropolitan area.
Moreover, renters facing soaring costs say states should have a cap on rental increases. States like Alabama and Florida have no rental caps laws. In Fact, it is illegal to impose rent control in Florida. The soaring rental costs are forcing many to downsize and consider more affordable options. Sara Espinoza is among those downsizing. She told CNN, “I guess right now, everybody’s just price-gouging because people need somewhere to live,” pointing to the ongoing Affordable Housing Crisis in America.
Cost Control on the way?
Additionally, Federal leaders are moving forward with plans to combat the record inflation. NBC reports the Federal Reserve plans to move forward with a series of interest hikes to help slow the economy and fight inflation. In March, it raised its key federal funds rate from near zero to a range of 0.25 percent to 0.5 percent. It projects at least six more rate hikes this year. The Federal Reserve predicts six more rate hikes in 2022.
Record inflation on top of the COVID-19 pandemic have propelled the cost of rent to levels not previously seen. Again, many Americans are making hard decisions at home. HUD, along with Navigate Affordable Housing Partners, are still offering Free Rental Assistance. Please pass these Resources along to any residents who may be struggling to pay rent.