Rent prices increased 5.8% in June from a year ago, marking the fastest pace since 1986, driving the overall inflation higher. The rising mortgage rates have made would-be home buyers drop out and slide into the overcrowded rental market.
Moreover, prices are expected to remain elevated. “Even if rents are coming down later this year, the CPI measure will likely still have rent surging well into 2023,” said Anna Wong, the chief U.S economist for Bloomberg Economics.
