The impact that inflation is having across the United States is not an easy thing for everyone to cope with. The gradual increase in prices is causing a large portion of Americans to have very serious economic problems. All prices, in general, are reaching record levels, but there is one culprit that keeps inflation rising all the time. Renting and buying apartments. In general, housing does not stop increasing and this makes everything else also has an increase.
Thus, not even energy has increased as much as housing. With an overall increase of 40% since the time before the pandemic, housing is reaching quotas that seemed unattainable. And this is leading to an increase in wages and also to an increase in all prices in general. Therefore, we could come to the conclusion that the biggest problem of the pandemic is none other than the constant increase in housing prices.
Inflation and housing
A key and fundamental point in understanding the almost invisible, but unstoppable, increase in inflation through housing is the control of the average rental price. But there is a subway element that makes everything harder to control. Not everyone is moving out every year because of the price change. But as soon as someone moves out, the landlord decides to increase the price immediately.
This increase can be seen in the monthly rent of a tenant who has been in a property for a while, but not in such an obvious way. As soon as a tenant leaves a housing unit, the landlord increases the price for the next tenant. For this reason, it seems that the rental price does not increase immediately, but it does not stop increasing at any time.
The chain of price increases
The increase in housing prices is only the beginning of the chain. For this reason, wages increase, and then so do prices. This ends up in a general increase that falls back on housing and then all prices go up again. Fortunately, workers can ask for a salary increase to deal with the problem. On the other hand, retirees and pensioners are unlucky in that they cannot ask for any kind of increase.
If we take into account that the increase in housing corresponds to 40% of the CPI, we can see that it is the most determining factor, above even energy, which has also increased to limits that no one thought it could reach.