10 Markets Surging With Inflation

A market flush with capital sounds great, but in reality, we are now living out the consequences of having enjoyed a long ride in a bull market. Put simply, there was a lot of money in our economy the last several years, which then combined with the economic stimulus action taken during the pandemic, acted as a catalyst for inflation to rise. Combined with incredibly low interest rates, the market was booming with increasing prices across the housing and rental sectors hitting historical highs.

As we shift into this correction, the overall US inflation rate has hit 8.6% as of May. In an attempt to stabilize the economy, the Federal Reserve is now implementing their strategy to cool the economy down by increasing the interest-rate to a high not seen since 1994, targeting a benchmark range between 1.5% and 1.75%. Why is this important? When it comes to housing, with its limited supply just like gasoline and other consumer goods, inflation can further drive up the costs period. If the Fed’s attempt to tame this is effective, we can anticipate seeing the frenzy of higher and higher housing prices leveling out, and potentially dip down. So, which markets are experiencing the highest surges in inflation, and where is this correction most likely needed? Let’s take a look…

10. Washington, DC

May Inflation Rate: 7.5%

Average Rent (1BR): $2,261

Average Price for a Gallon of Gas: $5.04

9. Boston, MA