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Rental prices increase by 5.3% compared to 2023

The rental rate has not stopped climbing. The constant increase in costs affects half of the owners and tenants in the country, who face difficulties paying for housing.

Los estados más baratos para comprar una casa.

Voz Media (Pixabay - Canva)

Published by
Verónica Silveri Pazos

Rental prices have skyrocketed. According to data published by the Bureau of Labor Statistics, rental prices have increased 5.3% compared to the same period last year.

Another similar index (called landlord rental equivalent) intended to measure the cost of housing for landlords also increased 5.7% compared to 2023.

Cpi by Veronica Silveri

Every day it is more difficult to pay for a home

High and rising prices make it more difficult every day for citizens to pay rent or a mortgage to own a home.

A survey conducted by Qualtrics in February 2024 and reviewed by Voz Media revealed that half of the country's homeowners and renters (49.9%) face difficulties making their housing payment. Many of them make great sacrifices to be able to meet their basic financial commitments.

Although the study explained that the most common sacrifice was not taking vacations or taking fewer vacations, many expressed having more severe problems making payments related to their homes.

More than one-third of homeowners and renters (34.5%) who struggle to afford housing indicated that they skipped vacations in the past year in order to afford their monthly costs.But many people who struggle to afford housing made more serious sacrifices: 22% skipped meals and 20.7% worked extra hours at their job. A similar share (20.6%) sold belongings.

Additionally, more than one in six people (17.9%) who struggle to afford a home borrowed money from friends or family. Meanwhile, 17.6% dipped into their retirement savings. More than one in seven (15.6%) delayed or skipped medical treatments.

Redfin economic research leader Chen Zhao detailed:

Housing has become so financially burdensome in America that some families can no longer afford other essentials, including food and medical care, and have been forced to make major sacrifices, work overtime and ask others for money so they can cover their monthly costs.

Inflation drops only 0.1 points

The Consumer Price Index (CPI) stood at 3.3% last May. The figure marked a small drop compared to April (when it stood at 3.4%):

The all items index rose 3.3 percent for the 12 months ending May, a smaller increase than the 3.4-percent increase for the 12 months ending April.

Core inflation, which excludes food and energy, rose 0.2% to 3.4% in May. Energy stood at 3.7% and food at 2.1%.

The all items less food and energy index rose 3.4 percent over the last 12 months. The energy index increased 3.7 percent for the 12 months ending May. The food index increased 2.1 percent over the last year.

The energy index also increased by 3.7% in the last year. Gasoline rose 2.2% and electricity 5.9%.

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