How inflation is affecting Chicago housing prices as consumer prices jump 8.3% over past year

CHICAGO (WLS) -- A new report shows inflation cooling off slightly in the US, with the inflation rate dropping to 8.3% in April from 8.5% in March.

Analysts call it a tentative sign that price increases may be peaking, but the costs for lots of things remain high.

SEE ALSO | President Biden addresses inflation during Chicago trip

Inflation is also affecting housing prices and causing problems in the affordable housing market. Across our area, finding affordable rental units is tough.

"We are seeing people impacted by it," said Karla Chrobak, with CARPLS Legal Aid, "especially people on fixed incomes whose income can't keep pace with the rising rental increases."

MORE: US added 428K jobs in April despite rising inflation, interest rates
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Friday's jobs report showed that last month's hiring kept the unemployment rate at 3.6%.

Chrobak is a supervising attorney for CARPLS Legal Aid, representing tenants and landlords.

"We are very concerned especially as we are seeing evictions take place," Chrobak said. "People still need to find housing and with these rental increases, it's just made it all that much more challenging."

Our ABC7 analysis for the data finds rent or the rent equivalent for homeowners makes up 40% of core Consumer price Index.

CARPLS is seeing more "no cause" evictions as landlords with smaller portfolios are going out of business.

"They are selling their properties, they are getting out of the business," Chrobak said. "The pandemic was very stressful, the moratorium were very stressful, especially those that rely on this as their primary source of income."

Chrobak says as landlords from their communities leave, large management are moving in - making it harder for renters to pay and changing the dynamics of neighborhoods.
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