Just as the dollar price of houses is increasing, the price of renting a house or apartment is also rising fast. People need a place to live and will own or rent. There is a high demand for buying and renting property at this time.

The causes for this phenomenon as as follows:

• Young people who are looking for their first apartment are competing with the people who delayed plans because of Covid-19.
• Remote workers with high income, are moving to lower-cost areas.
• Landlords, are cashing out, taking advantage of the higher prices leaving their tenants having to look for other places or to renegotiate leases with new tenants.
• The eviction moratorium is affecting the supply of available homes for rent.

The current rise in prices may end abruptly when new developments offer more supply and when the eviction moratorium ends. however, at this time, it is hard to know how high will the rent prices will go.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.