Rents and Inequity Rising Together
Since the Great Recession in 2008, a disproportionate share of the benefits of the recovery have gone to the most wealthy. And, as would-be home owners are pushed out of the housing market, there are more people competing for rental housing, pushing rental income up in gross terms, but also as a percentage of the gross domestic product. "Rental income as a share of gross domestic product hit an all-time high of 3.86% in the first quarter, according to government data out Friday," reports Andrea Riquier in Market Watch.
"During the downturn, Americans cohabited by necessity, and as baby boomers retire, many are opting to form multi-generational households with their children," Riquier writes. As these people look for homes of their own, they're more likely to rent and see high rents when they're in the market.