R
ent prices in the US are near all-time highs, even during seasonally slower months. A recent report from Zumper found that a one-bedroom unit in the 100 largest US cities costs $1,524 on average, up 2.5% from last year. Two-bedroom units are also more expensive, with a median cost of $1,905, a 3.1% increase.

    As consumers expect higher inflation, rent prices may surge alongside it. A consumer confidence report showed that people anticipate a 6.2% price increase in the next 12 months, up from 5.8% last month. Real-estate analysts predict that rental demand will pick up in warmer weather, leading to record-high rents.

    In many cities, apartments are already more expensive than they were last year. San Francisco units rose 10.3% to $3,200, while New York City units increased 6.4% from last March. Median rents in the Big Apple have never been higher, according to Jonathan Miller, a real-estate expert.

    Unless there's a recession, which some economists warn is possible, rent prices may continue to rise. Miller notes that if a record was set in February, it could be broken several more times this year. However, he expects the Sun Belt region to experience lower rent prices due to oversupply.

    The rental market is prone to boom-bust cycles, and if apartment supply rises too much, builders will pull back. In the meantime, renters may face higher prices elsewhere, particularly in areas with limited supply and high mortgage rates. This could fuel inflation, which may be a challenge for the Federal Reserve as it considers future rate cuts.