Americans are paying more to live in apartments, as demand for housing increases and many would-be homebuyers are forced to rent because prices for houses have gotten too steep.
It’s a boon for owners of big apartment communities more than a year after the economy fell into a recession that left millions of Americans unemployed and struggling to pay rent. Zillow, which tracks housing data, says its rent index rose 7.1% in June, the biggest year-over-year increase going back to 2015.
Government efforts to support Americans hurt financially by COVID, including relief payments, have almost certainly helped tenants keep up with their rent. At least one measure of rent collections shows fewer tenants are failing to keep up with payments than just a few months ago. And while apartment vacancies haven’t fallen back to pre-pandemic levels, they’re basically in line with the 10-year average.
