But with US consumers increasingly stretched well beyond their breaking point in a world where the price of everything continues to soar, making rent itself an unaffordable luxury for many, the rental juggernaut has finally come to a sudden halt, and according to Bloomberg, "after a record surge in housing costs and ballooning expenses for everything from food to energy, America's renters have had enough."
In what may be the best news for renters - and bulls desperate for a Fed pivot - rent gains are finally starting to slow in many parts of the US, cooling a years-long boom that sapped affordability from coast to coast. That's because with demand from tenants is suddenly sinking, landlords have little choice but to ease off big increases.
It's a dramatic reversal from the situation we described just months ago, when people were fighting over a limited supply of apartments, getting on waiting lists or paying multiple application fees to land one home. Now, particularly in pandemic boom markets such as Las Vegas and Phoenix, the application piles have thinned out and listings are lingering longer. And in the latest attempt to crush the US economy by an unknown elite, the measures of US household formation have even turned negative.