Rent Increases Highest for Lowest-Income Households

Renters at the lower end of the spectrum see no relief in sight as rent hikes remain stubbornly high.

1 minute read

March 26, 2023, 11:00 AM PDT

By Diana Ionescu @aworkoffiction


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While rent hikes are starting to ease for many renters and home prices dropped by 0.2 percent in February, the lowest-priced rentals are seeing the highest rent increases, reports Kristin Schwab for Marketplace.

As Schwab explains, “Price growth is slowing for renters overall — it’s at around 6%, about half what it was a year ago. Meanwhile, it’s stuck at 8.5% for lower-priced renters.” Economist Molly Boesel attributes this in part to the higher demand for housing in this tier. Additionally, restrictive zoning laws, parking requirements, labor shortages, and high material costs all contribute to higher building costs, keeping developers “focused on more expensive homes.” 

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