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Nationwide rents in June made their biggest monthly leap since 1986, according to the U.S. Bureau of Labor Statistics.
Rent rose 0.8% in June, the BLS said in its monthly report on prices. Rents were up 5.8% year-over-year in June.
The all-items inflation for the month was 1.3%, the BLS reported, and 9.1% year-over-year, the highest level since 1981. Rents are a major component of overall inflation.
Other measurements of rental increases are equally inflated.
Apartment List reports that its national rental index rose by 1.3% during June, the same as May. So far this year, the company said, rents are growing more slowly than they did in 2021, but faster than the years just before the pandemic.
Rents appear to be topping out, however, as renters aren't able to afford the higher rents, Moody’s Analytics Chief Economist Mark Zandi told Bloomberg.
"More rental supply is also coming, although this will take a year or two to have a meaningful impact on market rents,” Zandi said.
Currently, about 822,000 new multifamily units are under construction, according to the Census Bureau, up from 666,000 units a year ago.
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