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The inventory crisis that has plagued the real estate market for the last two years is now bumping heads with the supply chain issues that are curtailing builders’ abilities to meet demands for new homes. On top of it all, inflation has hit the economy like a tractor trailer jackknifing on the highway. The inflation rates that are being recorded have not been seen this high in the last four decades, dating back to the early 1980s. This is having a serious impact upon not only food prices, transportation costs, and other materials but it now seems to be driving the average rental prices higher.

According to the Zumper National Index, the median cost for a one-bedroom apartment hit another new all-time high in February and was the ninth time in 10 months that a new record was set.

Right now, New York City leads the way for the highest cost for a one-bedroom apartment coming in at $3,100 a month.

The inflation crisis is creating a challenge for first-time homebuyers especially, who are finding it very difficult to put away enough money for a down payment for their future home purchase.

Supply chain disruptions are having a palpable impact upon the price of rough materials, and construction materials creating havoc for builders nationwide.

As housing costs increase, the consumer price index also moves significantly higher, where housing costs are factored into this. The Zumper National Rent Index reflected a 12% increase for the median cost of a one-bedroom apartment rental year-over-year. The Zumper National Rent Index also reported that a one-bedroom apartment cost hit $1,393. The median cost for a two-bedroom apartment increased to $1,708.

The problem persists, whereas Zumper reported that the average rent in New York City for a one-bedroom climbed an additional amount to $3,295. This represents a 32% increase year over year. These record rental numbers are having an impact upon home sale prices. As rental prices increase, buyers and would-be buyers are being forced to consider purchasing a home and even paying more than they would for a rental for the benefit of accruing equity in their home.

If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.

Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.

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