Even in cities where there is significant new construction, don’t necessarily expect rent relief. Steve Joung, co-founder of Pangea Properties, which focuses on providing housing for the working class, said call Chicago real estate "a tale of two cities."
"There are a lot of cranes going up, and yet rents are at all time highs," he said. "The buildings that are going up are highly amenitized, with yoga studios, for instance. They are high end apartments.”
He added: “There is not a ton of money investing in underinvested communities.” That's a polite way to say nothing much is happening to alleviate the shortage of middle income housing.
“Instead of building condos developers are building high end apartment building for rentals,” added Andrew McLeod, chief strategic officer with RentMoolah, a service that lets renters pay electronically, not with checks.
It comes down to brass knuckles economics. “The money [for new high end construction] influx is caused by developers and investors chasing yield,” said Patrick Sprouse with Urban Igloo, an apartment rental website. Yield right now looks to be in pricey rentals. It definitely is not believed to be in middle-income housing.
Headlines touting cheap housing also may now be working against the nation’s midsection. Nela Richardson, chief economist at real estate website Redfin, elaborated that particularly gloomy news for Dallas, Atlanta, and the rest of inland America is that although people in search of cheaper housing may have been flocking there, reality has caught up with them. “As more people come it increases rent,” said Richardson.
Every arriving UHaul pushes rents up.