New data from the Bank of America Institute reveals that small businesses are continuing to grapple with cost pressures, with rent inflation being a significant challenge. According to the report, the average monthly share of rent in total payments has risen to 9.1% through May, a notable increase from the 2019 average of 5.9%. This surge in rent costs is particularly burdensome for small businesses across the country.
Regions like Las Vegas are experiencing even higher rent burdens, with the average share of rent in May surpassing the national average by more than double. However, there is a silver lining in the form of easing wage inflation, which has alleviated some of the pressure on small businesses. The Bank of America Institute highlights that total nonfarm payroll growth is strongest in the South, with cities like Charlotte and Tampa seeing payroll payments over 30% higher than in 2019.
