1 These dynamics suggest that a combination of very favourable and mutually reinforcing factors are at work. These include burgeoning demand, a subdued supply response, important links among commodity markets, and supportive financial conditions. An environment for a secular increase in commodity prices has been building since the middle of the 1990s.
Some rental contracts are probably still being affected by discounts offered earlier in the pandemic. In addition, the subdued level of rents was likely one of the factors that induced the decline in average household size I mentioned earlier.