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By Kristin Myers, Editor-in-Chief

ICYMI: 60% of Renters Have Faced Rent Increases Since Last Year

In case you missed it, a majority of renters (nearly 60%) saw increases in their rent over the last 12 months, a new survey from FreddieMac reported. And for many, the rent increases were big—nearly 1 in 3 surveyed said their rent went up by 10% or more.

But while rent costs are up (along with the prices of almost everything else), unfortunately income hasn't increased with it. Less than 40% of respondents said their wages have risen, while a third said their raises wouldn't cover their higher rent. Among those surveyed who said their rent increased, almost 20% said they are now "extremely likely" to miss a payment.

Inflation, which slightly cooled in July but is still near 40-year highs, is impacting nearly all Americans as higher prices force many to reconsider major milestones. A recent survey from The Balance found 38% of U.S. adults are delaying big milestones like buying a house or having a child because of inflation.

-Kristin

Editors' Picks

Rule of Thumb: How Much Should You Spend on Rent? (The Balance)

Using Price-to-Rent Ratio To Decide Between Buying and Renting (The Balance)

Funds Availability Rules and Your Deposits (The Balance)

Understanding Ownership of Property After a Death (The Balance)

Net Worth Goals by Age (The Balance)

The 50/30/20 Rule of Thumb for Budgeting (The Balance)

Can You Use a Credit Card on Venmo? (The Balance)

Term of the Day

Rent Control

Rent-control programs restrict how much landlords can charge for rent, how often they can increase rent, and what rules apply for evicting tenants. Rent regulations are put in place to make rental housing more affordable for lower-income renters and offer protection against illegal evictions.

These protections can help lower-income people stay in their homes, especially in hot rental markets where rental prices are skyrocketing even as incomes remain stagnant. Local or state laws can dictate when rent control restrictions apply. The restrictions you may be subject to can depend on where you live. Critics of rent-control programs argue that they result in housing shortages and drive up rental rates in non-rent-controlled areas.

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Off the Charts

The price-to-rent ratio measures the relative affordability of purchasing vs. renting in a housing market. To calculate it, divide the median price of homes sold in a real estate market during the previous 12 months by 12 months' worth of the median monthly rent in that same market.

Price-to-rent ratios of 15 or less indicate that it's a good financial decision to buy (if you're able). On the other hand, price-to-rent ratios of 21 or more tell you that the housing purchase market may be overpriced and it might be better financially to rent instead.

Here are the price-to-rent ratios in some large U.S. cities.