Tents Will Soon Be in Short Supply…Rents in the U.S. Have Risen As High as 49.8% and They Ain’t Slowing Down

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Without a sparkling credit score and a nice chunk of loot to put down on a new home, the dream of ownership remains elusive for millions of Americans who are forced to rent. But even renting often requires proof of financial stability and a good track record of keeping those pesky bills paid on time. If a tenant decides they prefer living rent-free, the dwelling’s owner must pick up the slack out of their own pocket since they more often than not still owe on the property. There’s also a good chance that the next tenant in line is going to pay more for the place than the previous tenant as a means of recovering the loss.

Rents have gone through the literal roof. Thousand of renters have experienced a drastically reduced quality of life. They’ve been forced to vacate their homes for less square footage, fewer amenities, and in lesser desired parts of town. Once their existing leases came to an end they couldn’t afford the increase and were left with no option but to seek more affordable accommodations which would allow them to still be able to eat. 

Krystal Guerra, 32, is a graduate student in South Miami where rents are off the charts. She didn’t mind living in her matchbox-style apartment with its tiny kitchen, cracked tiles, zero storage space, and such. She had another two years to finish her degree and it was all just part of the student experience. 

Guerra was squeaking by with a monthly rent of $1,550 but she had her finances figured out and was doing okay. As long as nothing changed she could make it until graduation. But it did change when a new owner bought the apartment and raised the rent by 26% up to $1,950, right around the same amount of money she was able to bring home every month from working part-time.

Guerra had no other choice but to move to a not-so-good part of town and start commuting. “I thought it was insane,” she said. “Am I supposed to stop paying for everything else I have going on in my life just so I can pay rent? That’s unsustainable.”  

She’s hardly the Lone Ranger. An overwhelming number of renters are having to dip into whatever remains of their savings or downsize into accommodations far below their former standard of living. Adding to their dilemma, the federal moratorium that once protected them from eviction is kaput. Nothing stands between them and their landlord but the slight hope they aren’t a douchebag.

During Joe Bidens’ first year in office rents in 50 of the largest U.S. metro areas rose by an astounding average of 19.3%.  If this number isn’t criminal enough, no city was hit harder than Miami where it skyrocketed by 49.8%. The average rent based on two bedrooms or less is $2,850. Gasp…

Other popular U.S. metro areas such as Tampa, Orlando, Jacksonville, San Diego, Las Vegas, Memphis, and Austin, Texas, have all experienced more than a 25% increase. 

During the same period of time inflation saw its largest increase in four decades at 7.5% which increased maintenance and upkeep costs for property owners. Economists believe this number will decrease over time but everyone knows that once the cost of something is raised it seldom goes back down. 

Since one-third of the consumer price index is based on housing costs, should rents remain at their escalated level or perhaps even rise higher now that some landlords have had a taste of blood, inflation isn’t going anywhere. It’ll continue to rise.

If this runaway train isn’t soon derailed look for tent cities to be the wave of the future as rats invade the empty houses and apartments that have all been foreclosed on by their respective banks due to the former tenants now residing in those tents. Can you see it in your head? Kind of an apocalyptic picture, don’t you think? Hope you own your place…