“$800 for Three Bedrooms” — People Share First Rent Payments to Show How Bad Inflation’s Gotten

Inflation has hit staggering new heights in the United States. Not only has the cost of goods left throngs of Americans worrying about how they're going to afford their families' grocery bills, but they're also worrying about their rent and mortgage payments.

Since 2022, it's been more difficult for the average U.S. resident to purchase a house than it was for folks during the Great Depression.

This doesn't just apply to home ownership either, but rental rates as well. Between 2021 and 2022, the average cost of rent jumped up by 18 percent.

Driving home just how much rental rates have increased over time, X users responded to a post uploaded by a user on the application who goes by @lilduval.

They asked folks: "Rent was how much when you got your first apartment ..."

And seeing what these initial monthly payments from folks might just make your eyes water.

One person penned "$800 for a three bedroom townhouse."

Today, the average cost of a similar living situation in the U.S. is $2,407 in 2024. This was a 4.2 percent increase from the previous year, according to Rentometer.

Someone else said that they shelled out close to this amount, too. However, they enjoyed the added benefit of the living space coming with its own furniture, too: "750 and it was furnished."

The aforementioned X user shared an anecdote that delineates just how much rent has increased in their area in a relatively short amount of time. For a "single" apartment, the renter stated that they were paying $850 a month, which was presumably in California, as they referenced Governor Gavin Newsom in their post.

Another person added that these kinds of monthly payments weren't all that difficult to find, either. According to their post, they personally knew people who were paying less than they were. "$700/month or so and that was easy to find at the time. I had friends paying $500-600ish too."

One might argue that the reason rental prices were so cheap was because folks were, on average, being paid less at their jobs.

However, due to the staggering increases in inflation over the years, the American consumer's buying power has severely diminished over time.

For instance, if you were earning $80,000 a year in 1990, that same salary had a buying power today of $193,178.27 today. But this figure still doesn't paint a complete picture of how difficult home ownership is now when compared to the past.

It should be mentioned that the annual property taxes on homes are increasing year after year, on average, across the country.

However, the United States did, indeed, experience a massive drop in 30-year fixed home interest rates from 1998 until 2020. In 1990, the average interest rate on a home was much higher than it is today.

But the average cost of a home was much less, as well. In 1990, houses cost between $123,900 and $151,200. Those same homes in 2023 would require consumers to shell out $345,928, give or take.

As of 2024, the average interest rate for a 30-year fixed mortgage is 6.72 percent. In 1990, it was between 9.97 and 10.13 percent. Let's take the higher end of that figure on a $151,200 home. Your monthly mortgage payment would come out to just under $1,275 a month, not including property taxes, home maintenance, or insurance fees, and with a 5 percent mortgage down payment.

Take that same house with current interest rates in 2023, and you're paying $2,125 a month. Again, none of the aforementioned maintenance and property taxes (which are higher now) have been factored into this amount, either.

Are you hoping that the U.S. economy will improve in the coming years?