How Inflation Adds Stress to Housing Affordability

01/16/23

“How does inflation add stress to rental affordability?”

Inflation causes the value of a currency to lose value. Landlords will often compensate for this shrinkage of wealth by increasing their rental charges. However, workers may not receive a corresponding salary increase from their jobs. The result is that people will have to pay a greater share of their income on housing. It’s easy to see How Inflation Adds Stress to Housing Affordability. Policymakers will have to make decisions to help their constituents cope with this problem.