The housing market has entered into a new era never measured before. As of a recent update from Moody’s Analytics, the rent-to-income ratio across the US has reached an average of 30%. And while this may not seem like a big deal to casual investors, it has wide-reaching implications that could cause the housing market to move in different directions. This is the first time a rent-to-income ratio has hit this high percentage point, which could spell bad news for landlords. Lu Chen and Thomas LaSalvia from Moody’s Commercial Real Estate division are joining us to explain the entire story behind the data. They have been closely monitoring the steadily rising rent prices for decades. With pandemic-fueled migration, Lu and Thomas both believe that we’re living in one of the most troubling times for renters. But how did this come to be? With massive housing development across the nation, what’s causing rents to remain so high? The answer isn’t what you might expect. Lu and Thomas have seen developers shift focus to certain housing types, leaving much of the middle class in a rent squeeze. This “missing middle” could explain why so many families are paying a solid portion of their income to rent every month. But with reasonably priced rentals becoming a hot commodity, what can landlords do to ease the burden and open up more housing for those who need it most? And where will rent head next after it’s broken through this previously unshatterable ceiling? Tune in and find out! In This Episode We Cover Housing affordability and why America just crossed into “rent-burdened” territory  The “ecosystem effect” and how pricier developments hurt the middle class Housing demand and why work-from-home hotspots put strain on the system  Housing markets where rent is declining and the rent-to-income ratio is weakening  Where Americans are moving to and why some millennials are staying away from the suburbs   Real estate development and which housing types are getting built  Comparing today’s rent crisis to 2008 and why a housing correction doesn’t always equal a rent crash  And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave’s BiggerPockets Profile Dave’s Instagram Moody's CRE Website Key Takeaways from 4th Quarter Connect with Lu and Thomas: Lu's Email Thomas' Email Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-81 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices