It was higher in other places — 25% in Boston — and most dramatic in Miami, where the median rent rose to $2,850 in 2021, 49.8% higher than the previous year.
Danielle Hale, real estate agent.comThe chief economist of , predicts that rents will increase by 7.1% in 2022.
Many factors are contributing to the rise in rents, including a nationwide housing shortage that has been exacerbated by the rising cost of building assets and weaknesses in the supply chain. According to the US Census Bureau, rental vacancy rates during the fourth quarter of 2021 fell to 5.6%, the lowest since 1984.
But there’s more to work than housing availability. We doubt that when all the new units under construction in Winston-Salem are finally completed, their expected rents will be reduced.
It has already been difficult for many working people to pay rent in Winston-Salem before factoring in the housing shortage.
And high rents have a detrimental effect on the rest of the economy, leaving fewer dollars to spend or invest elsewhere.
Higher rents also make neighborhoods like ours, with an attractive standard of living, less attractive. When tenants cannot afford rent, they dip into their savings, move to less desirable and less central apartments, or risk being evicted. None of these solutions is ideal.