The US housing market is going through some strange times.
Even though mortgage interest rates have risen rapidly as the Federal Reserve tries to cool inflation, house prices have continued to rocket.
The median US home price rose by 13.4 per cent from a year earlier to a record high of $416,000 in June, the National Association of Realtors said this week.
Monthly mortgage payments are now as much as 50 per cent more than they were a year ago, meaning that for millions of Americans, dreams of home ownership are harder to realise.
All of this has led to a jump in rental prices in many areas across the country, as would-be buyers remain stuck in an overcrowded rental market.
A recent report by Rent.com said many states had average rents soar over the past year, particularly in the Sun Belt, which comprises the southern US.
Leading the way up is Austin, Texas, the progressive capital of the Lone Star State that has seen an influx of high-paying tech companies setting up shop in recent years.
Rents for one-bedroom dwellings have more than doubled since last year, rising to $3,257 on average a month.
That's the largest jump seen in any city across the US, with the next biggest increase in Jersey City, New Jersey, where the 51.6 per cent increase means a one-bedroom apartment now goes for $4,421 monthly.
New York City is still the priciest place to rent. A one-bed now costs $5,812 on average, up 41 per cent.
Overall though, Rent.com noted, rental prices across America as a whole have generally stabilised and the cost for two-bedroom units have actually decreased by about 13 per cent.
The Dallas suburb of McKinney had prices drop 50 per cent, the biggest decrease reported. Rent there for a one-bedroom is now just $681.
Bloomberg last week reported that rents rose in the US last month at the fastest pace since 1986, helping to spur overall inflation to a fresh four-decade high.
But rent growth may be peaking as affordability concerns mount, and a surge in construction of new units is poised to start adding to the inventory.
In pictures: Dubai property apartment prices - July 2022
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Jumeirah: Dh2,079 per square foot — up 1.8 per cent in June, up 3.6 per cent in May, up 3.5 per cent in April. The National -
APARTMENT PRICES: Downtown Dubai rose by 0.3 per cent month-on-month in June, 0.5 per cent in May and are at Dh2,050 per square foot (they were up 0.7 per cent in April). Reuters -
The Palm Jumeirah: Dh1,913 per square foot — down 4.2 per cent in June, up 4.2 per cent in May, up 4 per cent in April. Antonie Robertson / The National -
DIFC: Dh1,679 per square foot — down 0.5 per cent in June, up 2.5 per cent in May, up 1.2 per cent in April. Jeff Topping / The National -
Mohammed bin Rashid City: Dh1,531 per square foot — up 1.9 per cent in June, up 2.3 per cent in May, down 0.2 per cent in April. Satish Kumar / The National -
Dubai Hills: Dh1,511 per square foot — up 1.6 per cent, up 2.7 per cent in May, up 0.3 per cent in April. Photo: Emaar Malls Management -
Business Bay: Dh1,489 per square foot — down 2.2 per cent in June, up 1.3 per cent in May, up 1.7 per cent in April. Sarah Dea / The National -
Jumeirah Beach Residence: Dh1,412 per square foot — down 2.8 per cent in June, down 1.0 per cent in May, down 2.2 per cent in April. Photo: LuxuryProperty.com -
Dubai Marina: Dh1,386 per square foot — up 1.8 per cent in June, down 0.3 per cent in May, down 0.7 per cent in April. Victor Besa / The National -
The Greens and The Views: Dh1,082 per square foot — up 1.2 per cent in June, down 2.5 per cent in May, down 0.6 per cent in April. Sarah Dea / The National -
Jumeirah Lakes Towers: Dh1,004 per square foot — down 0.9 per cent in June, up 3.1 per cent in May, down 1.1 per cent in April. Antonie Robertson / The National -
Damac Hills: Dh1,002 per square foot — up 0.4 per cent in June, up 2.1 per cent in May, down 0.7 per cent in April. Pawan Singh / The National -
Jumeirah Village Circle: Dh911 per square foot — up 1.2 per cent in June, up 0.4 per cent in May, up 0.1 per cent in April. Razan Alzayani / The National -
Town Square: Dh846 per square foot — down 1.9 per cent in June, up 0.4 per cent in May, down 1.9 per cent in April. -
Motor City: Dh653 per square foot — down 2.5 per cent in June, up 0.8 per cent in May, down 0.7 per cent in April. -
Dubai Silicon Oasis: Dh601 per square foot — up 3.6 per cent in June, down 2.9 per cent in May, down 0.7 per cent in April. Chris Whiteoak / The National -
Dubai Sports City: Dh606 per square foot — up 3.0 per cent in June, down 3.9 per cent in May, down 1.1 per cent in April. Reem Mohammed / The National -
Discovery Gardens: Dh515 per square foot — down 1.8 per cent in June, up 0.3 per cent in May, down 2.2 per cent in April. Pawan Singh / The National -
International City: Dh442 per square foot — up 0.9 per cent in June, down 0.5 per cent in May, down 0.6 per cent in April. Antonie Robertson / The National
