Renters face BIG price jumps in 2022; Finance professor predicts ‘multi-year situation

BOWLING GREEN, Ky. – Many renters have seen big price jumps in the last year.

WKU student Annie McGinnis says she has a wonderful landlord, however she’s faced this issue.

“I know that if I were to renew my lease again, that it would be an increase for whatever reason,” said McGinnis. “I can barely afford my rent now, so if I were to continue to live there, I wouldn’t be able to afford it.”

Florida condo owner Clay Foor, says “It’s definitely true that rents are going up really quickly, and I’m sure it’s a problem for people.”

Denver, Colorado’s Ashley Weiss said she’s seen rent increasing steadily the last five years.

“It’s almost impossible to find something that’s not really expensive if you’re just one person,” Weiss said.

These people aren’t alone. Along with increasing inflation comes rising rent prices, and in some cases, price gouging. 

WKU assistant finance professor Jonathan Handy is no stranger to the trend. 

A previous landlord himself, he now teaches students how to budget while prices continue to climb.

“I would expect this issue to be a multi-year situation,” predicted Handy. “Me, and my wife and my family have sat down and said that ‘prices are increasing’, and we’re gonna be tighter.”

He advises folks looking for a luxury rental property to not dip deeply into savings accounts or emergency funds.

“If you’re currently renting, looking to rent, recognize that you may have to adjust your expectations a bit, and that’s painful,” Handy said.

Handy says as a financial advisor, his best advice is to prioritize and not live beyond your means. Prioritizing might just mean luxury cannot be a top priority for a while.

This is perhaps a privileged comment, but try not to panic… Take a deep breath and try to look at it rationally if possible.”