Posted inAT+

Housing rent rise about to translate into CPI rise

Investors aren’t sure whether the unprecedented fiscal and monetary stimulus will lead to sustained inflation or to a “stagflation” in which price pressures cut directly into economic activity.

That uncertainty explains the whipsaw in US stock markets during the past several sessions. No one knows when consumers will balk at higher prices and save their money rather than spend it, or when businesses will reduce operations because higher input costs crush their profit margins.

What we do know with a fair degree of certainty, though, is that Americans who rent their homes are in for a nasty shock.

Rents fell during the pandemic because demand collapsed, in part because a federal moratorium on evictions kept renters in their existing homes. But the price of new rentals, as reported by the website,  came roaring back this year, with a nearly 10% rise in the average new rental between December 2020 and June 2021.

%d bloggers like this: