U.S. rents drop at the fastest rate in 7 years, per Zillow
Rent prices fell 0.4% in November — the largest month-over-month drop since Zillow started tracking this data in 2015, according to the real estate company’s latest rent report.
Why it matters: This is another sign that inflation is easing.
- Month-over-month prices are falling fastest in Raleigh (-1.3%), Austin (-1.2%), and Seattle (-1.1%).
The big picture: The rent got too damn high. Fewer folks could afford to pay these prices, particularly when the cost of everything else was going up, too.
- Now more people are "doubling up with roommates or family," instead of striking out on their own, Zillow reports.
- Rents are still way higher than before the pandemic, at a national average of $2,008 per month.
What we're watching: The recent declines will take time to filter into the government's Consumer Price Index numbers because of the way rent is measured in that report.
- Fed chair Jerome Powell acknowledged this at his press conference Wednesday, noting that inflation readings for rent will likely "come down sometime next year."