The Wall Street Journal reported yesterday that rents continued to rise across the U.S. through the fourth quarter of 2013, citing data from Reis Inc., a real-estate research firm. That brought the annual increase in rental housing prices to 3.2% — nearly triple the 1.2% annual rate of inflation.

According to the WSJ, market fundamentals have contributed to strong demand and tight supply for rentals:

Rising mortgage rates, tighter borrowing requirements and higher home prices have put many people out of the housing-purchase market. Plus, many people remain burned by the housing crash and don’t want to own a home.

If current trends continue, households and families already burdened by rent will face even greater difficulties meeting essential needs for food, medical care, and transportation.

These trends confirm the necessity of a dedicated, durable strategy to prioritize the needs of America’s low-income renters.

Read the full story or contact BB Housing to learn how we can help.

Source: WSJ