The cost of rent in May climbed at the fastest rate since 2007, according to the Department of Labor. This latest statistic further solidifies the struggle Americans are feeling as both the cost of renting and buying exceeds affordable limits.
Rent costs last month were 3.8 percent higher than they were during the same period last year, representing the fastest monthly rate of increase in nine years. This surpasses the rate of income growth, which climbed only 1.4 percent over the same time period.
The ever-increasing climb in home prices is putting upward pressure on the rental market. Many families that may have hoped to transition from renting to homeownership are finding themselves priced out but not finding much relief in a lease.
Those looking to buy a home will find that mortgage rates are near historic lows. Conforming no-point 30-year fixed mortgage rates average 3.625 percent while the 15-year rate is near 2.875 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.