“With median sales prices remaining close to record highs, there are prospective buyers who are priced out, and first-time buyers tend to be particularly sensitive to these elevated prices,” said Joel Kan, vice president of economic and industry forecasting for the Mortgage Bankers Association, in a commentary. What’s more, some prospective buyers forced out of the housing market have turned to rentals for a place to live, driving up rents, said Lawrence Yun, chief economist of the National Association of Realtors, in a commentary. Indeed, the average rent in July was 9.2% higher than in July of 2020, hitting $1,843 a month, according to a report released last week by real estate company Zillow. That’s the fastest rents have grown since at least 2015, as measured by an index that combines rental asking prices on Zillow’s own listings with Census Bureau data. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.
