The average monthly rent for an apartment has increased for 18 consecutive quarters, as tight mortgage credit, changing preferences among millennials and inventory shortages have combined to continually erode the affordability of units, The Wall Street Journal reports.
Rents rose 3.4 percent nationally for the 12-month period ending in June, even as household income continued to stagnate, WSJ said, citing data released by real estate research firm Reis Inc.
“There’s going to be a very severe housing-shortage problem,” Moody’s Chief Economist Mark Zandi told WSJ. “People are going to be in very difficult situations. This is a problem that’s going to be increasingly severe over the next few years.”