Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

An increase of more than 20% is expected in December, above the minimum wage adjustment

A CESO report concludes that the Minimum salary, vital and movil, which in December is $156,000, covers 62.4% of a rental. “This ratio, which had improved towards mid-2022, fell more than 30 points this month”, he adds.

The document detailed that compared to October, the monthly increases reached 11.1% in one-room apartments, 7.1% in two-room apartments and a notable 23.7% in three-bedroom apartments. Although these increases were lower than those recorded in November, they continue to show an upward trend in rental values..

In the last twelve months, the accumulated increases have been significant, reaching 284.6% for single-room units, the same percentage for two-room units and 308.7% for three-room units. These increases have considerably exceeded the year-on-year inflation rate which, until November, stood at 160.9% according to Indec.

Rents, inflation and uncertainty

This context of inflationary acceleration has generated uncertainty when setting the values ​​that will govern during the next six months. The high entry values, although affected by the rapid liquefaction with the current inflation rates, represent a barrier to accessing new rentals, holds the document.

The uncertainty about future prices and the deregulation in the cost of living of the population, driven by uncertainty in fuel rates and pricesalso influence this situation, the document adds.

Despite these challenges, there is a decrease in the number of apartments offered in dollars. This may be related to a change in the expectations of the suppliers after the results of the elections, as well as a resistance on the part of the demand to accept these contractual conditions.

Average rental prices have also seen significant changes. The median for studio apartments is $250,000, while the Minimum Living and Mobile Wage, which in December was $156,000, covers approximately 62.4% of said rent. This ratio, which had improved towards mid-2022, has decreased by more than 30 points this month.

The increases in rental prices compared to November have been 11.1% in studio apartments, 7.1% in two-bedroom apartments and 23.7% in three-bedroom apartments. These annual increases in offer prices are considerable: 284.6% in one-room apartments, 284.6% in two-room apartments and 308.7% in three-room apartments, far exceeding the interannual inflation rate.

The Index for Lease Contracts, which regulates the updating of rents within current contracts, has shown a year-on-year increase of 128.3% as of the first business day of December, while in the same period, the official dollar rose by 116. 1%. These data show the challenge that tenants face in meeting housing costs today.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *