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It is well known that from the beginning of the pandemic until now, the increase in house rentals in the United States has not stopped increasing. In some cities there is even talk of more than 52% if one year is compared to another.
Due to these exaggerated increases, many tenants have been forced to resort to their savings so as not to accumulate unpaid rent r; others have made the decision to move to perhaps more uncomfortable or distant places; and some have no choice but to delay paying rent month after month because they simply do not have enough money.
In addition to this, The tenants run the risk of being evicted because of the federal moratorium that was decreed due to the Covid pandemic has already finished.
According to a Realtor.com review reported in the Los Angeles Times in the 52 most populous metropolis in the United States, the average rent rose by 19.3% between December 2020 and December 2021.
The Miami area has been one of the most impacted by the rent increase, to the point of skyrocketing rents by up to 49.8% more than the year 2021. In Boston, they even make jokes about renting an igloo for $2 700 dollars a month. While in cities like Tampa, Orlando and Jacksonville, San Diego, Las Vegas, Austin, Texas, and Memphis, Tennessee, rents increased to more than 19%.
In January of 2022 rents increased by 0.5% compared to December of 2021, according to data provided by the Department of Labor. We are talking about the largest increase, from month to month, in 25 years .
One of the things that most worries finance experts, is the impact that this seemingly unstoppable increase in rents may have on inflation. It should be noted that increases in rental prices also feed the consumer price index.
How much can an owner increase according to the law
The other question on this issue is whether the owners really have the right to increase the price of rentals without any limit. And in the United States that will depend on the State and the regulations in this regard. On the other hand, the control of rents also depend on the year of construction of the property.
From United States It is one of the countries that in the face of the housing crisis began to promote laws to limit rental prices by law and they continue to grow very quickly
For example, states such as California, New York, New Jersey, Maryland, and Washington, DC, are subject to rent control. In most cases, the tenant can refuse to pay an increase if they consider it unreasonable.
California has a 5% limit on annual rent increases; but it has not been easy, in Minneapolis there is going to be a change in the status of the city in order to establish limits on rents; but in St Paul, after a plebiscite, it was possible to limit an annual increase of 3% at most. Furthermore, some states protect the tenant by limiting evictions to just cause only.
Aid for rentals
Inhabitants of the United States have the opportunity to apply for assistance to pay rent, either from the local or central government. Information can be found through social service agencies, by state.
Most of these aids can be categorized by, people without work, veterans, older than 65 years, among others.
Many states, independently, have requested aid from the central government in turn to help its residents with housing payment problems. For a precise example, the state of Florida recently received funding from the federal government for its “Our Florida” emergency rental assistance program for the second time. The amount this time was $799 million dollars.
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