Outpacing Wage Inflation

Nearly 60% of renters saw a rent increase during the past year, while just 38% said they saw their income increase, according to a study from Freddie Mac. And renters were less likely than all employed respondents to have gotten a raise. As a result, nearly 1 in 5 who experienced a rent increase said they are now “extremely likely” to miss a payment. “The surge in rents that took place over the last 12 months has created even greater housing uncertainty for the most vulnerable renters,” said Kevin Palmer, head of Freddie Mac Multifamily. “Our survey shows that the national housing affordability crisis is worsening, and that inflation is a key driver.”

Of those who saw a rent increase, 15% said it was a hike of more than 10%. Conducted in early June among a representative sample of 2,000 American consumers, the survey found that nearly all surveyed households were affected by higher prices during the prior year. Increases in the cost of groceries and household items impacted 66% of people in the survey. Among the other most cited areas for cost increases were transportation, eating out and utilities.

Source: CNN – Do you know what is the most effective protection against inflation? Owning a home!