Rent Increases Up Sharply Year-over-year, Pace may be slowing

Higher Rents will impact measures of inflation in 2022

Rents have increased sharply over the last year, and this is likely due to both demand and supply issues. Also, rents dipped in 2020, so some of the recent increase is making up for the 2020 decline. For example, the Zillow measure of new leases is up 16.8% year-over-year in March, but is up 8.8% annualized over the last 2 years.

What drives demand for…