The simple answer to this question is, that the demand for housing is growing after the pandemic has worn on. There are a few more substantial reasons for the change.
Increasing demand as more people want to shift
Demand for rentals is way up. Due to the pandemic, many people shifted to their parent’s houses. After the effect of the pandemic has worn out, people have started to move out and search for a new one. On top of that, many young adults are finding a new home as they are on the way to being independent for the first time. The result is a record limit of house searches. On the other hand, an adequate number of new houses were not built at the time. The rising demand for rental houses causes higher rent prices.
More wealthy renters
Pandemic has led to a shift in income capacity for people. The opportunity for white-collar workers, especially in high-paying industries has grown. Professions like tech and finance have seen a boom in income rates rise over the last few years. During the pandemic, people started to move from big cities to small suburban areas like Nashville and Tampa. Many of the renters are from the high-paying class, making the renting business high.
The housing market is extremely competitive
The housing market got saw hype during the pandemic. The median home sale price rose nearly 17 percent last year. On top of that, due to a high-income gap between classes of people, many investors started to invest in second homes. This caused an out-of-reach homeownership issue. The first-time buyer rate dropped, turning them into renters. As the demand got high, it affected the current home price.