Not only are home ownership prices rising,

but rental prices are increasing as well. According to the Cromford report:

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“Rents in Greater Phoenix have risen from an average of $1.01 per square foot to $1.22 per square foot per month over last year. That is a 21% rise, the highest we have ever recorded. Cromford projects we would need about 7 times the current supply to get back somewhere close to normality. As a result, Cromford thinks we will see a large increase in the number of people sharing housing with friends and relatives. In a recent webcast from Willy Walker of Walker & Dunlap, Ivy Zelman a national housing analyst, echoed Cromford’s sentiments, stating, “We estimate right now, even with households that have been consolidating, as young adults have been moving back with their families, we still think we are at a deficit of roughly 900,000 units in the U.S. in terms of what we need just to get back to normal in terms of single family.”