Fastest ris­ing rents in the US found in Jack­son, Mis­sis­sippi

The China Post - - WORLD BUSINESS - BY JOSH BOAK

Home rental prices are climb­ing across much of the United States — with the big­gest gains com­ing from not from New York or San Fran­cisco but Jack­son, Mis­sis­sippi, and Port­land, Maine.

Real es­tate data firm Zil­low said Tues­day that prices na­tion­ally climbed a sea­son­ally ad­justed 4.3 per­cent in May from a year ago. Rents still are ris­ing at dou­ble- digit rates in Den­ver, San Fran­cisco and San Jose, Cal­i­for­nia, with their job op­por­tu­ni­ties draw­ing new res­i­dents at a faster pace than con­struc­tion can match.

But two smaller cities led the gains in May. Houses in the Mis­sis­sippi cap­i­tal of Jack­son are rent­ing monthly for US$ 1,169, a 22.7 per­cent yearly in­crease. On the north­east­ern end of the United States, rental prices in Port­land, Maine have shot up 17.4 per­cent.

The steadily ris­ing costs of rent­ing houses and apart­ments are cre­at­ing new fi­nan­cial pres­sures for many Amer­i­cans. Rental prices have grown at roughly dou­ble the rate of wages, forc­ing more Amer­i­cans to limit their spend­ing else­where or cut­ting into their sav­ings.

A stun­ning 73 per­cent of renters say they have made fi­nan­cial trade- offs to pay their rents dur­ing the past three years, in­clud­ing tak­ing a sec­ond job and go­ing into credit- card debt, ac­cord­ing to a sur­vey re­leased this month by the MacArthur Foun­da­tion.

The greater fi­nan­cial pres­sures have led 61 per­cent of Amer­i­cans to say the coun­try is still in the mid­dle of the hous­ing cri­sis, ac­cord­ing to the sur­vey.

Con­sumers are pes­simistic about hous­ing de­spite a clear re­bound in sales. Home pur­chases in­creased 5.1 per­cent in May to an­nual rate of 5.35 mil­lion, putting the coun­try on pace for the strong­est sales level since 2007, ac­cord­ing to the Na­tional As­so­ci­a­tion of Real­tors.

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