Are Eviction Bans Driving Up Rents?
The answer? It’s complicated.
As rents have skyrocketed to record levels this summer, we’re often asked: Are rents surging because of the eviction moratorium?
The answer? Not directly, but it’s likely a contributing factor. To what degree will depend heavily on the property and the location.
Like pricing for almost anything else, setting rents comes down to Econ 101: supply and demand. When demand tops supply, price increases. We’ve seen this of late with lumber, food and even automobiles (among other items) – hence the talk of inflation.
Regardless of your view on the policy issue, eviction bans indisputably limit available supply. Units that would otherwise go vacant are not becoming available. Less supply in a period of high demand (as we see in 2021) drives up prices. But to what degree?