Rents are rising rapidly around the world, outpacing wage growth and creating a significant affordability crisis. This alarming trend is driven by several factors, including pandemic-related disruptions to construction, leading to a shortage of rental housing. Rent control measures often discourage investment, worsening supply problems, while central banks' interest rate adjustments impact housing markets. Proposed solutions focus on encouraging development and expanding the build-to-rent sector to increase housing availability. DW Business' Rob Watts speaks to Liam Bailey, global Head of Research at Knight Frank, to explore the reasons behind this trend.
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