New Economic Analysis Shows Fed Hikes Worsen Rent Inflation
Contact: Johanna Kichton, press@peoplesaction.org, 202.660.0605
WASHINGTON, D.C.– The Homes Guarantee campaign today unveiled a new economic analysis, co-written with Groundwork Collaborative, on rent inflation and the housing affordability crisis. The analysis follows the Federal Reserve’s announcement yesterday to raise interest rates by 0.5%, the seventh rate hike this year.
While inflation slowed overall in November, yesterday’s Consumer Price Index data showed rent inflation remains high at 7.9% year-over-year, meaning rents were 7.9% higher this time this year than this time last year.
“Millions of Americans still cannot afford their largest bill every month: the rent. Tenants need immediate action from the White House to regulate rent and provide more certainty for millions of people struggling to make ends meet,” People’s Action Homes Guarantee Campaign Director Tara Raghuveer said.
The analysis explains that rent inflation is a key driver of core inflation and that the Federal Reserve’s aggressive interest rate hikes ignore corporate landlords’ role in creating and maintaining this crisis and will hurt tenants.
“If the Fed triggers a recession, the consequences will be brutal for workers and families already struggling to stay afloat,” Groundwork Collaborative’s Director of Policy and Research Mike Mitchell said. “And even with seven consecutive rate hikes, there is nothing the Fed can do to stop powerful corporate landlords from squeezing as much money as they can out of tenants.”
Last month, three Homes Guarantee tenant leaders attended a stakeholder meeting at the White House. Just two days later, 100 Homes Guarantee tenant leaders rallied at the White House to demand a meeting with President Biden and key advisors like National Economic Council Director Brian Deese. The Homes Guarantee campaign also hosted a congressional briefing with Sen. Elizabeth Warren, D-Mass., and U.S. Reps. Cori Bush, D-Mo. Emanuel Cleaver, D-Mo., Jesús (“Chuy”) García, D-Ill., and Jamaal Bowman, D-N.Y.
Read the new rent inflation memo here.
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People’s Action builds the power of poor and working people in urban, rural, and suburban areas to win change through issue fights and elections. We are a national network of 38 state and local grassroots power-building organizations in 28 states–united in the work of building a bigger “we.”
Groundwork Collaborative works to advance an economic vision for strong, broadly shared prosperity and true opportunity for all. Visit our website and follow us on Twitter @Groundwork.