In an Eye-Popping First, Rents Increase by Double Digits

Between January 2012 and June 2021, 12.3 million households formed in the United States. How many homes were built in the same period? Seven million. That’s a shortfall of more than five million units, according to a realtor.com report. Material and labor shortages stemming from COVID-19 exacerbate the current housing crisis, and contribute significantly to a dramatic decrease in the number of lower-priced homes coming to market. “Homes with a median value of $300,000, which is considered relatively affordable, represented 32% of builder sales in the first half of 2021, down from 43% during the same period in 2018,” reports CNBC. Rents are spiking as a result, according to another report from realtor.com: “For the first time on record, rental price growth rose by double digits, increasing 11.5% year over year to a median $1,633 in August.”