Millions of Americans Forced to Move as Rent Prices Skyrocket Nearly 40% Across the US

Rent prices in the US rose 14% last year, hitting an average cost of $1,877 per month. In cities like Austin, New York City, and Miami, costs have increased between 35 and 40%, with inflated prices expected to rise by an additional 10%, according to the real estate firm Redfin.

Higher rent prices are expected to be a key driving force in the coming months. With the cost of living becoming increasingly unaffordable, many Americans are being forced to move, or live in their cars. Three years into the COVID-19 pandemic, rent freezes and eviction moratoriums have expired, no longer aiding those who are struggling to pay rent.

“The fact is, for too many Americans, housing is unaffordable. We have an inadequate supply of homes- for both rent and for sale- and, of course, the lowest income families are being hit hardest,” Dennis Shea, executive director of the J. Ronald Terwilliger Center for Housing Policy at the Bipartisan Policy Center, told the Washington Post.

A report by the Federal Reserve Bank of New York states that rent amounts will continue to rise by 10% in 2022. Economists say there is usually a lag around 9 to 12 months before the housing prices are accounted for by inflation measures, and that rent prices alone could be responsible for keeping inflation levels high throughout the year.

In an attempt to weather the storm, the Biden administration began reallocating unused funds from its Emergency Rental Assistance program, which has a net worth of $46.5 billion. The American president has also vowed to add close to 100,000 affordable homes over the next three years, as well as urging states and local governments to reform zoning laws.

In the late 1970s the US was adding roughly 400,000 entry-level homes a year. In 2020, the market only added 65,000 of those entry-level homes.

Jenny Schuetz, a senior fellow at Brookings Metro, says that to improve housing affordability, three tools must be implemented: reforming land use regulation to allow smaller, more compact housing, increasing taxes on expensive/underused land, and expanding housing subsidies to low-income households.

Zoning reform would readjust a rule that has pushed many Americans out of being able to buy affordable houses. At present, expensive and often majority white–owned lands have zoning laws in place that prohibit anything from being built other than single-family detached homes.

Economists say that unlike inflated food and gas prices, when rent and mortgage costs rise, it’s much harder to see that trajectory fall. One in four renters spends more than half their monthly income on rent, according to a 2018 census by Harvard University's Joint Center for Housing Studies. Experts say that figure is even higher this year.

Many people have also reported that despite local rent freezes, some landlords have found ways to gouge their tenants’ incomes by tacking on “amenity fees” or charging for services that were otherwise included in their rent.

Aleksei Valentin and his husband had to move from their one bedroom apartment in Frederick, Maryland, to a studio apartment in a neighboring county. He told the Post that during the pandemic, his building started charging them random fines and tacking on amenity fees for items like the trash “not being put out exactly like they liked.” And the more people moved out, the more the amenity fees would increase.

“Prices are so high, inflation is astronomical, and the house my parents bought for $30,000 in the late 1970s is worth over half a million today,” Valentin said. “How can [we] enter into that market without intergenerational wealth? It’s impossible.” The price of their one bedroom when they left was $1,270. It’s now on the market for $1,600. Valentin, who is 39, says that even buying a tiny house feels like “a pipedream.”

With so many Americans working from home during the pandemic, many who were able to relocate to the suburbs or buy vacation homes did so. This increase in demand left housing prices high, while apartments were left to manage their mounting vacancies. But with people flocking back to cities for an economy which has reopened, landlords now have the upperhand to ask for more out of their tenants income.

Shadow LeMere, who lives in Austin,Texas, is being forced to move her belongings into storage. LeMere and her wife will live in their car and travel up the East Coast until they’re able to find somewhere affordable to live - they’re being forced to make the major move after their rent increased by 43%.

“We can’t afford to live here anymore,” she said. “Not in Austin, not in Texas. We’re going to nomad it for a bit and see where we end up.” The city of Austin has the fastest increasing rent rate of any major US city this year.