U.S. Rent Prices Rise Amid Housing Demand

The housing market in the UK and the US is experiencing significant stress as demand continues to outstrip supply, leading to rising rental prices. In the UK, a recent report highlights that for every property available, there are eight prospective tenants, and rents have increased amidst fears of new legislative changes following a Labour government victory. Meanwhile, in the US, multifamily housing construction has dropped sharply, with permits down 30% this year, prompting concerns that rental prices will rise as the influx of new apartments slows. Nationally, one-bedroom apartments saw a 1.6% increase in rent, while two-bedrooms rose 2.7%, with Salt Lake City experiencing even steeper increases. As rental vacancy rates remain low and mortgage rates high, both markets indicate a challenging environment for renters, with significant investor activity noted in new builds in regions like Western Australia. Experts anticipate that the impact of declining construction will not be fully felt until at least 2026.