Planning to buy a new car or kitchen appliance in 2016? Be prepared to open your wallet a little wider, as these are just two of the items that are expected to cost more next year. However, it’s not all bad news. The Consumer Price Index showed modest increases overall for 2015 and even decreasing prices in areas such as apparel and energy costs.
Here’s a look at what could cost more in 2016.
1. Rent. Residential and commercial property rental costs could rise in 2016, and not just in red-hot residential markets like San Francisco and New York. Michael Levin, associate professor of marketing at Otterbein University in Westerville, Ohio, says residential rental markets that have not been hot for the past several years, such as Cincinnati and Dallas, could see rising rents. “Demand is finally catching up with supply, and it’s squeezing the available supply, so residential rents will increase,” Levin says.
The Zillow Home Price Expectations Survey, which surveyed 101 real estate experts in January, found that more than half of the experts said they expect rental affordability to worsen for at least another two years.continue reading »