— This is the script of CNBC's news report for China's CCTV on January 27, 2020, Thursday.
The American property market has been enjoying a boom under the pandemic, but many analysts warned that higher housing prices will translate into rent. And it has been shown in the latest report from Realtor.com, a housing information provider. According to the report, the cost of rent, on average, was 10.1% higher in 2021 than in 2020, growing more than five times faster last year than it did in 2020.
And the growth accelerated in the second half of 2021. By December, rents recorded the sixth-straight month of double-digit annual increases. Last month, the median rent for a one-bedroom was $1,651, or about 10,500 Chinese yuan, up 19.3% over the year before. Some cities saw even bigger surges, led by cities of Florida, the destination where many New York companies moved to Median rent in Miami witnessed a 49.8% annual increase in December, and those in Tampa and Orlando were at least 34%.
Due to Covid-19, many employees no longer need to live near the office. And as a result, second-tier cities are shining in the growth of rent. In California, the first-tier city San Francisco saw a negative increase in rent, down 2.5% from 2020, making it the slowest growth one among major cities. And New York merely recorded a 1.4% annual increase in 2021. However, the rent in the city of Riverside, a city around Los Angeles, rose 28.5% in 2021. It is the fastest-growing city in terms of the rent increase.
But higher rent means higher living expenses. There are about 40% of American families living in rented property. That means tens of millions of American families are suffering from the rising rents. And the rising rents will also be included in the consumer price index (CPI), which measures the inflation level. Analysts are worried that the rents will continue to rise, keeping inflation elevated.
In Florida, the local media is paying attention to the housing crisis in Tampa, where soaring housing prices are forcing locals to move out. And in California, some cities have adopted certain rent caps. But it has also brought conflicts since property owners are calling for higher rents.