Peach Tree Times

Amid high inflation and other worsening economic conditions, a majority of Americans have witnessed rent increases over the last year. An even greater majority fear they will be unable to pay their housing costs over the next 12 months, according to a recent poll by Freddie Mac's Federal Home Loan Mortgage Corporation.

In Georgia, rent prices have increased nearly 30% over the last two years.

“The surge in rents that took place over the last 12 months has created even greater housing uncertainty for the most vulnerable renters,”  Kevin Palmer, head of Freddie Mac Multifamily, said in a recent release. “Our survey shows that the national housing affordability crisis is worsening and that inflation is a key driver." 

This comes as the National Association of Realtors’ housing-affordability index shows U.S. housing was more expensive in June than it has been for any month in more than 30 years, the Wall Street Journal reported. The index, which factors in family incomes, mortgage rates and the sales price for current single-family homes, fell to 98.5 in June, which marked the lowest level since June 1989, when the index was at 98.3.

Poll results show that 69% of respondents fear rising housing costs in general, and 58% of renters have experienced some degree of rent increase in the last 12 months. Nearly 1-in-5 who had a rent increase said that they are extremely likely to miss a payment, while 38% said that they are somewhat likely.

According to the Wall Street Journal, "consumer sentiment toward the housing market has worsened alongside affordability." The Federal National Mortgage Association Fannie Mae surveyed consumers in July and found that 17% of respondents said it was a good time to buy a home, compared to 28% a year ago. 

Additionally, the percentage who think it's a good time to sell a home fell to 67% from 75% a year earlier.

This month marks five consecutive months in which the country has seen existing home sales decline, the Wall Street Journal reports. During the same time period, interest rates shot up while home prices steadily climbed, which led to more buyers being priced out of the market and the sharpest erosion of affordability for the U.S. housing market in decades.

On Aug. 10, the Bureau of Labor Statistics released the Consumer Price Index data for the 12 months ending July 2022. The data showed an 8.5% all-items annual increase, with the food, shelter, and electricity indexes experiencing the largest increases.

On average, Georgia saw a 28.7% rise in one-bedroom rent prices from March 2020 to June 2022. As of June, the state's average monthly rent cost is $1,251 for a one-bedroom unit, U.S. News reports.