SKYROCKETING INFLATION, RENTS, AND HOME PRICES RICK TOBIN
8. Stamford, Conn.
Average Rent: $2,109/mo.
Can of Coffee: $5.18
Home Price: $598,000
Trip to the Beauty Parlor: $55
Dozen Eggs: $2.10
9. Orange County, Calif.
Average Rent: $1,778/mo.
Can of Coffee: $5.33
Falling Rates & Increasing Home Prices
Home Price: $721,000
Trip to the Beauty Parlor: $60
In 2014, real California household income dropped
Dozen Eggs: $2.19
by 2% from the previous year. Yet, home prices in
the Los Angeles and Orange County skyrocketed by
10. Washington D.C.
20% between 2013 and 2014. While Los Angeles
Average Rent: $1,960/mo.
and Orange County, California are two of the most
Can of Coffee: $4.93
expensive regions, there were several other housing
Home Price: $767,000
markets which also experienced 10% to 20%+
Trip to the Beauty Parlor: $51
annual home appreciation price trends in spite of
Dozen Eggs: $2.36
stagnant or falling jobs and income numbers.
How is this possible? ANSWER: The combination of
(*Source above: The Council For Community And
near record low mortgage rates and fewer places to
Economic Research Cost of Living Index
buy or lease are boosting demand, sales prices, and
http://coli.org/ )
monthly lease payments.
(Source: Federal Reserve Economic Data – St. Louis Fed: https://fred.stlouisfed.