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business Saturday 4 June 2022
Tenants grapple with rent hikes amid overall inflation spike

LOS ANGELES (AP) — At a of 612,000 units in April, ac-
time when rising gasoline cording to the Commerce
and food prices are al- Department. That's up
ready straining Americans' 42.3% from a year earlier
budgets, many apartment and the fastest seasonally
tenants are grappling with adjusted annual rate since
soaring rents. April 1986.
The Miami-Fort Lauderdale- That additional supply
West Palm Beach metro- should help eventually, but
politan area in Florida saw it can take months or years
overall median rent soar for projects to hit the mar-
over 50% in April from a year ket, especially given supply
ago, to $3,045 a month, ac- chain and labor constraints
cording to Realtor.com. that have delayed all man-
The next biggest increase? ner of construction during
The central Florida metro- the pandemic.
politan area made up of While the national hom-
Orlando, Kissimmee and eownership rate is around
Sanford, where the median 65%, there are more renters
rent jumped 32.9% from than homeowners in many
April last year to $1,927, the large metropolitan areas,
firm said. such as New York, Los An-
Nationally the median rent geles and Chicago, Hale
climbed to $1,827, an in- A view of the New York City skyline, with the Empire State Building in the center, is seen from One said.
crease of about 17% versus World Trade, in New York, June 15, 2021. And the burden of sharp
the same month last year, Associated Press rent increases tends to fall
according to Realtor.com, mostly on a segment of the
which tracks rental listings National median rent has finances, while about 76% Years of rising home prices population that tends to be
in the 50 biggest U.S. met- set new all-time highs for 14 noted they're unable to and the recent surge in younger and less financially
ropolitan areas. months in a row. At the cur- save as much money every mortgage rates have left flexible.
"The fact that rents are rent pace of increases, it month as they did a year many would-be homebuy- "The renter population
rising much higher than could hit $2,000 by August, ago. ers with little choice but to tends to be different than
we've seen historically is Hale said. Rents as mea- Tenants are likely to see keep renting. the homeowner popula-
a reflection of the unique sured by the U.S. consumer further rent hikes this year. Developers are responding tion," Hale said. "They tend
time that we're in, where price index haven't risen About 72% of the landlords by ramping up apartment to be younger, they tend to
the economy is adjusting to this fast since May 1991. surveyed said they were construction to the fastest have less wealth, and also
a couple of extraordinary In a recent survey of renters planning to increase rents pace in decades. be lower income, gener-
years and shifts in prefer- and landlords by Realtor. within 12 months. Newly started construc- ally speaking, which can
ences," said Danielle Hale, com more than 66% of ten- Landlords have the lever- tion of apartment build- make it more difficult for
Realtor.com's chief econo- ants said higher rents were age to ask for higher rents ings climbed to a season- them to navigate price
mist. the biggest strain on their because demand is strong. ally adjusted annual rate increases."q
Japan tech giant Toshiba studying going private as an option

By YURI KAGEYAMA a "radical transformation" Toshiba has weakened,"
TOKYO (AP) — Toshiba ex- quickly, showing a clear said Shimada, who took
ecutives said Friday that direction and leadership, over as chief executive
privatization remains an Black told reporters. three months ago.
option for the Japanese In March, investors rejected The options will be nar-
technology company, as a company-backed reform rowed down after a June
they defended their efforts proposal to split Toshiba 28 general shareholders'
to choose the right bidder into two businesses. meeting, according to
to restore what they called Some shareholders, includ- Toshiba. The company is
"a strong Toshiba." ing foreign investment seeking shareholders' ap-
Tokyo-based Toshiba has funds and U.S.-based proxy proval at that meeting for
been trying to win over advisory firm Institutional nominations of some out-
shareholders to a restruc- Shareholders Services, op- side directors to the board.
turing plan. The company posed the plan. An ear- The selected investment
has not given the nation- lier plan that also was partners will be asked to
alities or other details of the scrapped had called for a submit legally binding pro- The logo of Toshiba Corp. is seen at a company's building in
potential investor partners, three-way split. posals in July. Kawasaki near Tokyo, on Feb. 19, 2022.
including eight that have Black, who has experience Japan Investment Corp., Associated Press
recommended that Toshi- in international consulting owned partly by the Japa-
ba Corp. go private. and turning around trou- nese government, and U.S. It remains unclear if a suitor nuclear disaster in March
Toshiba's chairperson, Jerry bled Japanese companies, investment fund Bain Capi- needs a Japanese part- 2011. A tsunami sent three
Black, stressed in an online and Taro Shimada, a for- tal are reportedly among ner to be able to close the reactors into meltdowns,
news conference that how mer executive at Siemens, those trying to acquire deal. spewing radiation over an
bidders' proposals are eval- have been trying to come Toshiba. "Japan and the world will area that's still partly a no-
uated will be transparent to up with another plan. Black said Toshiba was need a strong Toshiba," go zone. The company is
all stakeholders. "It's important that we focus working closely with the Black told reporters. involved in the decommis-
The goal is for Toshiba to our assets to move forward. Japanese government in Toshiba has been strug- sioning effort, which will
go through what he called Many people are saying evaluating its options. gling since the Fukushima take decades.q