Rental Rates are a Big Problem

skyscraper-450793_1280While the economy continues to improve, one area that is slowing growth in other areas is the rapid increase in apartment rental rates.

Economists surveyed by Zillow expect rents to continue climbing for at least the next two years. Zumper, another rental listings site, sees rent increases outpacing inflation as developers of multifamily housing developments ratcheted up their activity in June to the highest level since 1988.

The timing couldn’t be worse for Millennials, workers roughly aged 22 to 34. As Zillow noted, they pay on average 30 percent of their income for rent, up from 23 percent for similarly aged Americans in 1979.

Find out more at CBS Money Watch.

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