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Rent prices rise as inflation hits 8.5% - what this means for Milwaukee

US homeownership rate of 62.9 percent matches a 51-year low
Posted at 6:32 PM, Apr 12, 2022
and last updated 2022-04-12 21:39:09-04

As inflation hits a new high at 8.5 percent, rent prices are hiking up across the country.

Rental rates have been growing for eight straight months.

According to Rent.com, the cost of renting rose 4.4 percent in March compared to the previous year. A two bedroom home costs about $2,000.

"It all varies, but I observed that there's some increase all across the board," said Yaidi Martinez, associate scientist at the University of Wisconsin-Milwaukee's Center for Economic Development.

Martinez said multiple factors are playing into rent hikes, such as high demand and low supply, but so does the big cost of buying a home these days.

"Probably people are staying longer and renting you know, just holding on," Martinez said.

Location, size, and quality are also factors in rent prices.

"In the Milwaukee area, compared to last year, rents on average have gone up about $100," Martinez said.

She went on to say the average cost of rent in the Milwaukee area is $1,300 for a one bedroom unit, while in Racine the average cost is $930.

"Overall, we see it has increased over the last year. However, the difference is not as much compared to other markets, compared to also the national trend," Martinez explained.

The Midwest overall is not seeing extremely large price hikes like Florida for instance.

Martinez said if we do not see supply increase as demand grows, this spring and summer prices may keep rising, but she does not expect it to be excessive.

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