California rent raise

The real estate market remains unstable, particularly for potential buyers deterred by high interest rates and declining inventory, leading many younger individuals to opt for renting. Notably, rent prices have surged in southern cities, with Raleigh, North Carolina, experiencing a 29.8% increase since 2019. In Seattle, a property tax levy's potential success may reflect the city's demographic split, where renters may be less aware of how property taxes impact their rent compared to homeowners. California's rent increases are capped by law, although many renters still face significant hikes, with some areas seeing rises of up to 9.3%. The ongoing housing crisis in California has led to exorbitant home costs, with mid-tier homes requiring an annual income of around $235,000, substantially above median incomes. Additionally, public pension investments in real estate are contributing to rising rents, as tenants in properties owned by investment funds report steep increases, raising concerns about gentrification.