The Bank reported that both Phoenix and Atlanta are among the MSAs that are seeing the highest rent inflation, with the rent component of Consumer Price Index (CPI) up 21% and 13% yearly in July. This figure is far above the national average of 6.3%.<\/p>\n
- \n
- We\u2019re No. 6: Phoenix still a top relocation destination<\/a><\/li>\n
- The Top 15 home builders in AZ<\/a><\/li>\n
- Landsea Homes in Phoenix \u2060\u2014 everything you need to know<\/a><\/li>\n
- New homes in Mesa, AZ that\u2019ll turn your head<\/a><\/li>\n<\/ul>\n
Limited rental supply could be the reason why rental payments are rising fast in southern cities, the Bank suggested. Vacant rentals as a share of total housing units in the South dropped by nearly one percentage point on a quarterly basis, the largest decline among all four U.S. geographic regions since 2019.<\/p>\n
On the other hand, other large cities reported a noticeably smaller uptick in rents during July. For example, based on internal data, rental payments in Los Angeles and New York jumped 3% and 4% annually last month. However, the Bank explained that this median rent payment may not reflect the \u201creal effective rent payment.\u201d<\/p>\n
\u201c[In] New York City, during the pandemic, some landlords offered several months free as concession instead of lowering the listed rent price,\u201d said the Bank\u2019s report. \u201cMore recently, as the rental market started to heat up again, they are no longer offering those concessions. As a result, Bank of America median rent payment data could understate the effective increase in rent payments.\u201d<\/p>\n
Median rental payments rise 7.4% annually for Bank of America customers<\/h4>\n
Over the last year, inflation has been picking up, impacting everything from travel to car sales. As the Bank of America Institute points out, inflation has become more widespread in the economy, including rental prices.<\/p>\n
According to internal bank data, median rent payments for Bank of America customers increased 7.4% year-over-year in July, slightly higher compared to June, when payments grew 7.2% annually.<\/p>\n
Even as overall inflation pressures backed off in July, data from the CPI report shows that rent for a primary residence increased to 6.3% yearly, the fastest pace since 1986. The Bank pointed to rent inflation as an \u201cimportant area of focus,” as 34% of U.S. households are renters and approximately 47% of lower-income families rent.<\/p>\n
- The Top 15 home builders in AZ<\/a><\/li>\n
![\"See](\"https:\/\/www.livabl.com\/articles\/wp-content\/themes\/livabl\/images\/see-also-cta-icon.svg\"\/){kind=icon}
\r\n