Rising Rents Threaten Rental Affordability as Mortgage Rates Stay High

Higher mortgage rates are keeping many would-be homebuyers in the rental sector, intensifying competition for apartments and pushing rents upward for the first time in years. Private-sector data from Zillow and Apartment List indicate that rents have stopped falling after a prolonged softening that followed a surge in new apartment construction post-pandemic. Government figures from the Bureau of Labor Statistics confirm that rent growth has become sturdier, even though data for October 2025 are missing because of a government shutdown.

New York Times

Karla Guity, 33, and her husband rent a three-bedroom house in Shoreline, Washington, for $1,800 a month. The modest rent allowed them to forgo full-time work while their daughters were young. The couple’s desire to purchase a home is stalled as long as mortgage rates stay elevated.

New York Times

Analysts note that the Federal Reserve is expected to hold interest rates steady at its Wednesday meeting, but investors anticipate another rate increase before year-end, which would keep mortgage rates high. The combination of solid rent growth and persistent mortgage-rate pressure creates a feedback loop that could limit the Fed’s ability to achieve broader disinflation.

New York Times

Federal Reserve officials are projected to keep rates unchanged at the upcoming Wednesday policy meeting. The Bureau of Labor Statistics reports that rent growth has steadied after a period of decline.

New York Times

• “We’re not in deceleration world anymore, probably not going to get a lot of disinflationary pressures from rents,” — Jonathan Millar — Jonathan Millar, senior U.S. economist, Barclays.

New York Times