Thursday, November 3, 2022 / by Jenny Carroll
Inflation and Rent - A Short Discussion
Contributed by John Case
Dripping Springs Stanberry Office
We are telling you something that you probably already know. Rents are high; incredibly high! While the answer is a little obvious, there are 3 reasons, all of which are subsets of the real reason.
1) There really is too much money in the economy for the available goods that it is chasing. It may not feel like it if you haven’t had a raise in a while but rents have been increasing faster than many household incomes have.
2) There are not enough places to rent. This has become more and more true over the past 5 years. The demand for properties to lease, has exceeded the number of them available. This creates a condition of demand outpacing supply which results in this demand pushing up lease rates simply because the demand had families bidding up what they are willing to pay. In this way many families have insufficient income for the home they need or want and must search for a home that . ...
Dripping Springs Stanberry Office
We are telling you something that you probably already know. Rents are high; incredibly high! While the answer is a little obvious, there are 3 reasons, all of which are subsets of the real reason.
1) There really is too much money in the economy for the available goods that it is chasing. It may not feel like it if you haven’t had a raise in a while but rents have been increasing faster than many household incomes have.
2) There are not enough places to rent. This has become more and more true over the past 5 years. The demand for properties to lease, has exceeded the number of them available. This creates a condition of demand outpacing supply which results in this demand pushing up lease rates simply because the demand had families bidding up what they are willing to pay. In this way many families have insufficient income for the home they need or want and must search for a home that . ...
