Why have rent and mortgage prices doubled(or more) in the past 2 years?
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Some of the other factors to consider is the cost of building right now. Initially it was a supply chain issue with lumber and other materials driving those costs up. Then add in labor shortages due to people who are no longer in the trades because they got out during the pandemic or businesses that folded decreasing overall competition. Add in longer and longer times to get materials as well as to get permits and to deal with plans and other administrative issues and there is ongoing consistent pressure on the cost of building.
All of these increase the cost of new construction and of repairs and remodeling. When new construction costs go up, so does the value of existing stock. When those costs go up, the costs go to the consumer as either higher sales or higher rent.
Hopefully, the combination of higher interest rates driving demand down and a backlog of construction projects finally coming to market will help to stabilize and even bring the base sales costs down. Unfortunately, the higher interest rates make the cost of money go up so the home value is less but the mortgage is up so you’re not likely to see actual savings to the end consumer for awhile.
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