What is the purpose of the imperceptible arrangement of "increase in rent"? Housing market outlook: 1 The relative speed of housing rent growth versus the growth of the total cost of living.
It hasn't changed in 8 months. 2 From March last year until the end of this year, the ratio between point-to-point rent inflation and general inflation in the national renters' market is constant and stands at 0.4. 3 This ratio means that in recent months the rent growth rate was less than half of the general inflation rate, and although these two rates are constantly changing, the distance between them is maintained. 4 In the past, rents in the country grew at a much faster rate than the general inflation rate, and the resulting number was higher than one. 5 In the winter of 1999, the rent inflation reached 1.5 times the general inflation and in the spring of 1403 it reached 1.4 times. 6 Now the spot inflation of the rent is 34%, which is much lower compared to the general inflation of 89%. This disparity raises a question: Why hasn't the cost of rent increased in line with inflation? ◀ The answer must be sought in "the subtle control factor of the rate of rent increase". ◀ The difficult livelihood of the tenants became a "shield for the sharp growth of the rent" during at least one year. ◀ Tenants against "112% inflation of food products in the last year" and also "105% inflation of sustainable and non-sustainable products in their monthly consumption basket".
They must create a balance between "necessary expenses" and "more necessary expenses" according to their limited income. ◀ They have now established this fragile balance by "eliminating a number of foods from their shopping cart and also removing a number of expense factors including travel". ◀ But this balance is broken with a sharp increase in rental prices, and in order for this not to happen, if the tenants are faced with sharp growth rates of the rent, they "leave the rental place" and choose an apartment or a neighborhood with a lower rent. ◀ Since most of the tenants currently have "fragile and very limited payment power" due to the "increasing poverty" in this group.
As a result, sharp offers by apartment owners to increase the rent in renewal contracts may lead to the risk that "the apartment will remain empty for months" for them.