Zillow released a new report last week and made an important discovery: rents in April were four percent higher than the previous year. This is the fastest increase in two years and actually outpaced home prices, which grew by three percent. The affordability of rent is getting out of control and will likely worsen as the freshly created money seeps throughout the system and price inflation soars.
“There are tremendous incentives to get into homeownership these days: mortgage access is improving, interest rates are low, and home values remain below prior peaks,” said Zillow Chief Economist Dr. Stan Humphries. “But it will be increasingly difficult for many renters to realize these benefits as this country’s growing rental affordability crisis continues to worsen.
This is an important statistic for Fed Chair Janet Yellen and the money-printing machine at the central bank. Perhaps her response would be: what, me worry?
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