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Making Sense

What’s driving rent inflation?

Jun 28, 2024
Phoebe White, Head of U.S. Inflation Strategy, and Anthony Paolone, Co-Head of U.S. Real Estate Stock Research, analyze rent inflation trends post-pandemic. They discuss supply trends, varying rent increases, and the impact of wage inflation on rental affordability.
17:01

Podcast summary created with Snipd AI

Quick takeaways

  • Renewals are driving significant increases in rent costs, particularly in multifamily housing.
  • Supply deliveries in certain regions are affecting rent inflation, with areas like New York experiencing higher rates due to limited supply.

Deep dives

Rent Inflation Trends and Market Dynamics

Rent inflation remains high, with costs up over 5% compared to a year ago, running above pre-pandemic norms. Renewals are driving significant increases, particularly in multifamily housing at 4-5% and even higher rates for single-family rentals. Market rents have not risen as steeply for new leases due to lower mobility, contributing to landlords having significant pricing power.

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