Earlier this month AIRINC was invited to speak with Plus Relocation’s Advisory Council about the state of the US rental market. We presented on the unprecedented inflation that we have seen in the last year, our expectations for the rest of 2022 & 2023, and how companies are reacting.
Here is some of the market intelligence that we shared:
AIRINC measured 130+ US locations with 10% or more inflation from April 2021 to April 2022
The majority of that inflation has occurred in the past 6 months
Annual Inflation in many of the Bureau of Labor Statistics Top 40 Metropolitan Statistical Areas (MSAs) is 3-3.5x higher than total inflation from 2016-2019
This unprecedented inflation has been driven by a combination of:
- Lack of supply due to supply chain issues slowing construction of new units and landlords selling existing rental units to capitalize on the hot sales market
- Rising demand as people continue to re-shuffle back into major cities, from major to smaller cities, and from the over-heated buying market into the rental markets.
- This inflation is expected to continue to varying degrees in 2022 especially as interest rate hikes are likely to result in more potential buyers moving back into the rental market and supply chain issues continue to slow down new unit construction.
Thank you to Plus Relocation for inviting us to present! Need to hear more on the impact of inflation across the world? Contact us!