5 Reasons why the cost of renting is increasing

Real Estate Agent with RE/MAX Stars Realty


Here are 5 reasons why the cost of renting a home or apartment is on the rise.


Inflation is one of the key reasons why the cost of rent is increasing


The federal government has increased mortgage Interest rates which is a contributing factor why the cost to rent a home or apartment is higher because the monthly payment for many landlord are going up.  Some landlords have their rental properties on commercial loans which are typically variable interest rate loans – these mortgages have experienced sizable increases in monthly mortgage payments.  Most landlords have to pass that additional monthly cost onto the buyer by raising the rent.  


The same principal applies when there is an increase in real estate property taxes and when the insurance industry has insurance rate increases on homeowner’s insurance.  When there are increases in costs especially due to inflation, the landlord will generally need to increase the cost of rent to cover their added expenses otherwise they could actually lose money.


Something people usually aren't thinking about is that we have experienced a sizable Increase in population.  An increase in population means more people need housing and that creates even more demand for rentals and housing.  The current demand for rentals and housing is the highest I have ever seen during my 37 years in the real estate industry and rental pricing is dictated by the laws of supply and demand.


People are living longer and there are far more people who are choosing to stay in their home during their later years.  This means houses and apartments that would typically have become available to sell or rent are not becoming available like they had years ago.


Are you thinking about making a move?  The Sam Miller Team of REMAX Stars Realty is here to help - Feel free to call or message us at 740-397-7800.


Sam Miller

REMAX Stars Realty

710 South Main Street

Mount Vernon, Ohio 43050

Call 740-397-7800








Comments (8)

Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Wonderful points made, thanks for the post.  Have a great taco Tuesday. Bill Salvatore / Arizona Elite Properties

May 02, 2023 07:07 AM
Sam Miller

Thanks Bill!  It is a super fantastic day here in Central Ohio.  I actually used to live in Tucson in the early 1980's and raced bikes in Chandler at the ABA track - Sam 

May 02, 2023 07:16 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Sam and great information to share with us here in the Rain.  Make it a great Tuesday!

May 02, 2023 07:39 AM
Sam Miller

Thanks Will!  Are you experiencing a sizable increase in rent pricing in Aurora, Colorado?

May 02, 2023 07:42 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Hello Sam, and thank you for sharing this. Today, everything's price is increasing unfortunately and increases in rents are inevitable too. 

May 02, 2023 07:39 AM
Sam Miller

Thanks Lise!  How is the availability of rental in the Washington DC area?  I am betting you are experiencing higher than typical rental rates.

May 02, 2023 07:43 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

May 02, 2023 12:59 PM
Sam Miller

Thanks Joe!  The rent increases feel like they are going up, up and away.

May 02, 2023 01:00 PM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Concise and informative and easy to comprehend for benefits to own rather than rent real estae. 

May 03, 2023 08:24 AM
Sam Miller

Thanks Kimo!  I

May 03, 2023 09:33 AM
Ed (Edward) Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Good information for renters. However, with the escalation in rents, it is still better to pay one's own mortgage and not the landlords.

May 03, 2023 09:49 AM
Sam Miller

Thanks Ed!  I agree that the escalations in rent confirms what you are I have known for many years and that is that owning is better than renting especially when you factor in the increases in rent in the years to come - Sam 

May 03, 2023 10:00 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post!   Agree on all counts! 

A lot of baby boomers are aging in place and not moving to retirement villages, because it's cheaper.  Bringing in a visiting nurse is less than moving to an independent or assisted living facility!  

May 07, 2023 05:33 PM
Sam Miller

Thanks for commenting Jan!  I agree with you that a lot of baby boomers are aging in place and it can be cheaper and most people would rather be in their home.  Many people are living longer BUT do not require full time professional care and they only need a little help a couple of hours a day and that makes a huge difference and they cost savings can be significant.

May 08, 2023 05:12 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Really enjoyed reading this post on why the cost of rents are increasing!  Everything makes good sense!  Thank you for sharing!

May 17, 2023 08:40 AM
Sam Miller

Thanks Diana,

Has the rent for homes and apartments in your community increased significantly over the last 2 years?  Ours sure has and the availability is at an all time low.

Sam Miller

May 17, 2023 12:09 PM