A market flush with capital sounds great, but in reality, we are now living out the consequences of having enjoyed a long ride in a bull market. Put simply, there was a lot of money in our economy the last several years, which then combined with the economic stimulus action taken during the pandemic, acted as a catalyst for inflation to rise. Combined with incredibly low interest rates, the market was booming with increasing prices across the housing and rental sectors hitting historical highs.
As we shift into this correction, the overall US inflation rate has hit 8.6% as of May. In an attempt to stabilize the economy, the Federal Reserve is now implementing their strategy to cool the economy down by increasing the interest-rate to a high not seen since 1994, targeting a benchmark range between 1.5% and 1.75%. Why is this important? When it comes to housing, with its limited supply just like gasoline and other consumer goods, inflation can further drive up the costs period. If the Fed’s attempt to tame this is effective, we can anticipate seeing the frenzy of higher and higher housing prices leveling out, and potentially dip down. So, which markets are experiencing the highest surges in inflation, and where is this correction most likely needed? Let’s take a look…
10. Washington, DC
- May Inflation Rate: 7.5%
- Average Rent (1BR): $2,261
- Average Price for a Gallon of Gas: $5.04
9. Boston, MA
- May Inflation Rate: 7.5%
- Average Rent (1BR): $3,634
- Average Price for a Gallon of Gas: $4.99
8. Los Angeles, CA
- May Inflation Rate: 8.0%
- Average Rent (1BR): $2,661
- Average Price for a Gallon of Gas: $6.33
7. Chicago, IL
- May Inflation Rate: 8.0%
- Average Rent (1BR): $2,080
- Average Price for a Gallon of Gas: $6.02
6. San Diego, CA
- May Inflation Rate: 8.3%
- Average Rent (1BR): $2,756.
- Average Price for a Gallon of Gas: $6.32
5. Denver, CO
- May Inflation Rate: 8.3%
- Average Rent (1BR): $1,879
- Average Price for a Gallon of Gas: $4.86
4. Minneapolis, MN
- May Inflation Rate: 8.7%
- Average Rent (1BR): $1,621
- Average Price for a Gallon of Gas: $4.72
3. Dallas, TX
- May Inflation Rate: 9.1%
- Average Rent (1BR): $1,474
- Average Price for a Gallon of Gas: $4.67
2. Riverside, CA
- May Inflation Rate: 9.4%
- Average Rent (1BR): $2,074
- Average Price for a Gallon of Gas: $5.56
1. Tampa, FL
- May Inflation Rate: 11.3%
- Average Rent (1BR): $1,834
- Average Price for a Gallon of Gas: $4.69
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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