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Lu and Thomas go over exactly what would have to happen to return to a normalized, affordable housing market and what’s hurting our efforts to get there. With a lack of housing supply and inflation eating away Americans’ income, what can everyday investors like us do? Thankfully, there is a solution to this problem that could help curb unaffordability while presenting a profit for investors. Lu and Thomas’s team have been tracking rent prices carefully, logging which cities have seen the most significant price increases, which are becoming increasingly unaffordable, and what can be done about the problem. What’s causing this rise in rents? Are investors to blame? And what’s a solution that could benefit builders, buyers, and renters? We’ve got Lu Chen and Thomas LaSalvia from Moody’s Commercial Real Estate division to give us their findings. Now, with higher rent prices than ever before, America has become “rent-burdened,” and a dangerous threshold has been crossed. With major metros seeing double-digit year-over-year rent percentage bumps, residents were forced to throw a larger chunk of their income toward housing.

But, few of us would have ever expected the unimaginable rent hikes of 2020-2022. Rent prices have steadily risen for as long as we can remember.