Soaring rents squeeze renters as punishing housing market tightens, with backdoor rent controls warned to worsen crisis

Aspiring homeowners across the United States are being locked out of buying as mortgage rates keep monthly payments beyond reach, forcing them to compete for a shrinking pool of rentals and driving rents higher for the first time in years. Karla Guity, 33, of Shoreline, Washington, says buying would cost her family over $6,000 a month in mortgage payments, trapping them in a rental they dare not leave. The Federal Reserve held rates steady on Wednesday but investors expect another rise before year-end, tightening the squeeze further.

Private-sector data from Zillow and Apartment List show rents steadying after a post-pandemic glut of new apartments had briefly softened the market.

Barclays senior economist Jonathan Millar warns the US is 'not in deceleration world anymore' and that rent inflation risks heading in the wrong direction.

In Britain, 'backdoor rent controls' being introduced by the government will reportedly deepen the housing crisis rather than ease it.