It should be especially unsurprising when you pair this with dramatically reducing inventory at the same time housing demand is at an all-time high.
Almost 1% of renters get evicted per year in normal times. Almost 0.5% of homes get foreclosed in normal times.
^ This makes up a decent percentage of overall new leases / purchases. It's not like 100% of renters move every year.
We have a lot of markets with restricted housing measures that should make it obvious that reducing supply even a little, can cause prices to go up a lot.
You give people the largest transfer of money in history - increasing personal income by the largest margin in decades, lower interest rates dramatically, AND reduce supply - at the same time everyone is going bat-shit insane trying to "WFH" with kids and there's no where else for them to spend money...
I will be surprised if there is not some really bad unintended consequences from this. But I'm far from surprised that prices are going up in the middle of a "recession". There's 30% more M2, personal income is up 10%, and payments are ~15% cheaper due to interest rates. Why should anyone be surprised that rents are up?
Las Vegas had the highest increase in rents. It had the highest unemployment rate. People on unemployment were making > median wage. Why should anyone be surprised rents went up?
Almost 1% of renters get evicted per year in normal times. Almost 0.5% of homes get foreclosed in normal times.
^ This makes up a decent percentage of overall new leases / purchases. It's not like 100% of renters move every year.
We have a lot of markets with restricted housing measures that should make it obvious that reducing supply even a little, can cause prices to go up a lot.
You give people the largest transfer of money in history - increasing personal income by the largest margin in decades, lower interest rates dramatically, AND reduce supply - at the same time everyone is going bat-shit insane trying to "WFH" with kids and there's no where else for them to spend money...
I will be surprised if there is not some really bad unintended consequences from this. But I'm far from surprised that prices are going up in the middle of a "recession". There's 30% more M2, personal income is up 10%, and payments are ~15% cheaper due to interest rates. Why should anyone be surprised that rents are up?
Las Vegas had the highest increase in rents. It had the highest unemployment rate. People on unemployment were making > median wage. Why should anyone be surprised rents went up?