GlobeSt.com reports that June 2019 saw a spike in rent prices across the US, increasing about 0.826%. You can view the entire article here. Yes, 0.826% is less than 1%, but on an annualized basis this change would result in an increase in rents of about 10%. And this after years of increases, all faster than the rate of inflation.
Part of the problem is the cost of new construction. Few new single-family homes have been built owing to affordability problems. This in turn has driven up prices on existing single-family homes. Price escalation causes increased demand for housing alternatives like apartments.
Another source of trouble is the government interference we’ve thoroughly documented in this space. Government regulation and constraint on development has increased the cost of construction and limited the supply of additional housing, again putting pressure on rents.
What it means is that, like it or not, fair or not, rent prices are going to continue increasing. Of course, if you live in an area with rent control, then you probably won’t be able to find an apartment at all.
That is why we are grateful to be able to offer beautiful (and affordable) apartments in 14 cities and towns across Southeastern Wisconsin. Contact Decker Properties to arrange a visit, or call our office at (262) 785-0840 with your apartment question.