A Bank of America Institute study found that rent increases are felt most by small businesses in the West, where the average percentage of rent payments in May was more than double the national average.
Not only are housing rents rising across the country, but small businesses are also feeling the impact.
A study by the Bank of America Institute found that rent increases are felt most by… small companies in the West, where the average percentage of rent payments in May was more than double the national average.
The latest data from April showed that about 43% of small business owners in the United States were unable to pay their full rent on time.
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The study said the figure had not been this high since the height of the COVID-19 pandemic in March 2021. The report explains that rents are more expensive now, largely due to inflation.
Some small business owners in Denver said it has been difficult to keep up with rent increases.
The owner of a Denver crystal and gemstone store said rent inflation is currently making it difficult for entrepreneurs to thrive. (Kennedy Hayes/Fox News)
Tim Baca, owner of Denver Crystal and Gems, said he has owned his store for three years, but his rent payments have never been like they are now.
“The cost of rent has been very high and very unpredictable,” Baca said. “I’ve been looking for a new location. It’s been very difficult. Rents are very high right now.”
Baca said he had to raise some of his product prices to keep up. inflation, and some items have become too expensive to sell. Baca said she is lucky to have a good flow of customers who have helped keep her business running.
That hasn’t stopped him from looking elsewhere, though.
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“I’ve also been looking in other states because there are a lot of people moving from Colorado, from Denver, a lot of businesses, because the price is too high to run a business,” Baca said.
As many as 20 cities across the country have seen rents rise over the past year.
Small shops in Denver say rent increases are preventing them from buying their products. (Kennedy Hayes/Fox News)
Small businesses in Las Vegas, San Diego and Washington DC make some of the largest payments.
Matt Megyesy, one of the owners of Mutiny Information Café in Denver, which sells comics, coffee and other items, said he is also concerned about rising rents.
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“We always have in mind to look for another place that is maybe a little bit cheaper, maybe a little bit smaller,” Megyesy said. “You don’t see buildings growing with rent increases. Let’s say we have the air conditioning of a building from the 1980s.”
Some shop owners say they hope more homes are built in their area to attract more customers.
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Megyesy said his store has been open for more than a decade and he hopes the city will build more homes in the area so that more consumers of its products move in.
“Until those people are here, it’s just wishful thinking,” Megyesy said.