We’ve all noticed that it costs more to fill our gas tank and our refrigerators. My weekly grocery bill has gone up 25% over the past year. Is it because my three teenagers are eating me out of house and home or because the cost of food is so much higher?? Probably a combination of both! Those kids can eat A LOT!!
Looking at the housing market, housing prices remain at an all time high and inventory at an all time low. The basic economic principle of supply and demand explains it all. Even if the Fed does increase rates next year, it may take a long time for supply to catch up to demand and for the real estate market to balance out. In 2021, Homebuyers and Renters faced an agonizing year of trying to find housing and outbid competitors while Sellers enjoyed good fortune.
The article, “Inflation Hitting Middle-Class RIers Like a 7% Pay Cut – Top RI Economists and Business Experts” in the December 16th edition of GoLocalProv does a good job of analyzing dynamics currently in play and affecting middle income Rhode Islanders.