Dollar Collapse
US headline inflation exceeded 7% in 2021. But rent increases put the Consumer Price Index to shame, soaring an average of 13.5%. And within that already-brutally-high average, there were some absolutely astounding outliers. Phoenix rents soared 25.3%, followed by Tampa, Miami, Orlando, Las Vegas, and Austin, all of which exceeded 20%.
That means an Austin barista could receive a 10% salary bump and have most of it wiped out just by an increase in their rent. Add in the soaring costs of food and gasoline, and our hypothetical worker is actually losing ground despite their double-digit pay raise.
A confluence of things
Rents do tend to rise a bit each year, with 3%-4% being typical. So how did 3% become 20%+ in so many markets? A confluence of factors, including:
