Rising rents are one of the main drivers in the recent bout of inflation. They are also spurring many renters to try to buy a home as quickly as possible.
Average monthly rents listed in the U.S. jumped more than 14% year over year in December, climbing to $1,877, according to data from Redfin. Redfin has also predicted that rent increases will outpace home price increases in 2022.
Economists recommend buying a home as a way to stave off inflation and build wealth. Potential homebuyers are redoing the math on renting after seeing their monthly payments go up and choosing to get a home given the expected rise in mortgage ratesand future rent increases.
Source: Redfin analysis of asking rents & home sales data from MLS & public records
Note: Mix of homes for rent and homes purchased are not directly comparable.
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