Soaring rent prices hurt small business owners

by ian

Soaring rent prices are creating new problems for small businesses.

So far this year, the average business has paid over 9% of its costs toward rent, according to the Bank of America Institute. For comparison, the average monthly share was just under 6% in 2019. A recent poll found nearly half of small business owners can’t make their rent payments on time.

This comes as the housing affordability crisis is getting worse instead of better. Redfin’s latest data shows that the median U.S. home sale price narrowly missed $398,000 in June. That’s up 5% from last year and is now the highest price on record.

The average monthly payment for a 30-year mortgage is now just about $2,750.