It'll be fun to tell our grandkids about how money used to have value and most people could afford basic housing.

From Axios:

The average price of a rental apartment in Manhattan surged above $5,000 in June for the first time, hitting $5,058, according to a report from brokerage firm Douglas Elliman out Thursday.

Why it matters: Manhattan is ultra-expensive — typically an outlier — but in this case it's on-trend. Rents are up across the country, as soaring mortgage rates keep potential homebuyers stuck in the rental market.

Young people that would normally be buying their first homes are being priced out of the market, so many have no choice but to pay insane rental rates.

The big picture: This points to a conundrum. The Fed is raising rates to cool inflation. But rate hikes are driving higher rents, which are fueling inflation.

Zoom out: Across the country, rents were up .8% in June from the prior month — the largest monthly jump since 1986, according to yesterday's blazing hot CPI report. They've increased 5.6% since last year.

The only reason that number is so low is because most people are renewing rent, and those rates are generally much lower than prices for new renters.

But even if it were just 5.6% across the board, that's still double what the average person gets in a yearly raise!

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