By Tyler Durden
New data from CoreLogic Inc. shows rental prices for single-family homes soared to an all-time high in 2021. This comes as on-time rent collections deteriorates as households are pressured by soaring shelter, food, and energy inflation.
CoreLogic’s new report says rent prices for single-family homes increased by 7.8% in 2021, a record high. In December, rent prices jumped 12% year over year for the month.
Soaring rents for single-family homes come as on-time rent collections are rapidly deteriorating.
Only 92% of renter households had made their rent payment for December by the end of December, the lowest percentage since April 2019, down from 93.8% in December 2020, and down from 95.9% in December 2019.
What stands out is the down-trend over those 33 months, interrupted by the months when the big stimulus checks poured into household coffers. – Wolf Richter via WolfStreet.com
Without stimmy checks, as shown above by Richter, increasing rent prices and soaring inflation, in general, will continue to pressure household finances. With inflation climbing at its highest pace in four decades in January, such cost pressures sent consumer sentiment to its lowest level in more than a decade last week.
The inverse relationship of soaring costs and declining on-time rent is on full display. It only suggests more discontent for the Biden administration as polling data plunges ahead of the midterms.
But don’t worry, the Federal Reserve is hard at work as hawktard comments from St. Louis Fed’s Jim Bullard are basically attempting to spark a mini-recession to cool inflationary headwinds.
Top image: Pixabay
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