The rental crisis in the United States is once again hitting

The latest study suggests that rent in the United States increased by nearly 30% between 2019 and 2023, while wages for workers only increased by 20%. This means that rent has risen 1.5 times faster than wages in just four years, causing many American workers to feel the immense pressure of consumer inflation and begin collective protests. In the past few years, many American renters have seen rent as the first step into the housing market. However, today an entire generation of Americans are facing the challenge of rising rents, which makes it difficult for them to save up for a down payment when buying a house, and some even cannot save any savings, like being trapped on a treadmill in debt.

Firstly, except for the six major metropolitan areas in the United States, the rental growth rate in all other major urban areas has exceeded that of worker wages. The high housing prices and interest rates have left many tenants in an unaffordable apartment situation. Across the United States, Florida has the highest rental growth rate, especially in Miami, where rent increases exceed 50%. The pleasant climate and relatively low cost of living here throughout the year have attracted a large number of new residents, but it has also led to a surge in housing demand and a surge in rent. This imbalanced growth model has brought enormous pressure to the living costs of local residents.

In addition, even in sunny areas and the Midwest, rental prices are significantly rising, a situation that used to be common only in major coastal urban areas of the United States. Research shows that rent in Tampa, Florida has increased by 50% since 2019, while wages for workers in the city have only increased by 15%. In the coastal areas, rent in Jacksonville increased by 35%, while wages for workers only increased by 12.2%.

In contrast, the situation in Houston is slightly different. The annual salary growth rate here is about twice the national average, making it one of the few cities in the United States where salary growth exceeds rent growth. Houston's achievement is not only due to a strong job market, but also to active local policies and economic diversification strategies. In other regions, such as San Jose, San Francisco, Portland, and Austin, as market heat begins to decrease, the actual growth of rent has slowed down or even shown a downward trend. This provides an opportunity for salary growth and also provides tenants with a bit of breathing space.

Secondly, the significant increase in rent not only extends the time tenants spend in apartments, but also exacerbates the homelessness crisis in many major urban areas in the United States. Nowadays, large homeless camps or temporary tent cities have emerged in major cities across the country, which is no longer a rare phenomenon.

More noteworthy is that the rapid increase in rent, housing prices, and interest rates is triggering an extremely serious housing crisis, to the extent that American politicians or economic observers have almost no other solutions besides vague encouragement for the future. The recent remarks of Treasury Secretary Janet Yellen are a typical example, as she attempts to provide limited hope for the future without making specific commitments to solving the problem.

Overall, Americans are facing a new round of rising housing costs, with rising rents exacerbating inflationary pressures in the United States. More seriously, higher rents may prompt people to demand higher wages to cope with rising costs of living, which could become another factor driving up inflation.