FREDERICK, Md. (WDVM) — We’ve been hearing it from economists across the country for weeks now: inflation is raging.
The Federal Reserve Board (FRB) said increases approach 40% in some markets. In major cities, average monthly rents are closing in on $1,900. This is having a strong impact on the economy since housing makes up roughly a third of the consumer price index. And as mortgage rates rise, rental units become a more attractive alternative to buying a home. One real estate professional in our region is seeing this trend first hand.
“We’ve watched rentals go up almost 16.8% in the past 12 months,” says Luke Schlabach, “absolutely crazy. Inflation is at 7.1%. Things are going to keep going up.”
The Biden administration, meanwhile, is pumping more than $46 billion into emergency rental assistance programs. The president also promises to add 100,000 affordable homes over the next three years through low-cost financing to developers.