The snowballing U.S. rental crisis is sparing nowhere and no one

Abstract

Rent hikes are expected to persistently push inflation higher, since leases are staggered and renters face shocks at different times. People of color and those with lower incomes are the most affected by the increase in rent prices, since they account for the majority of renters. Some 54% of renters earn less than $50,000, and the annual median household income among renters is about $42,500, below the national median of $67,500, according to Zillow. New ArrivalsAn influx of new residents is driving up housing costs in Atlanta, where rents have increased 14.8% from a year ago as of May. The current median rent is $1,730 per month, according to CoreLogic. Tough ChoicesLas Vegas rents rose by 16.7% in May from the year prior to a median of $2,110 per month, the third largest increase out of 20 metro areas studied by CoreLogic data. In Tucson, Arizona, rents rose by 12.8% in May from the year prior, with the median rent price being $1,942 per month. Reynolds of the Urban Institute said she refers to this as the idea that "Rent eats first," which is when people put their money toward rent "Even if it means that they can't buy other essentials like groceries."Ballooning DebtAs rent, fuel and grocery costs rise, more people are turning to debt to cover their costs.