Home News US rents hit a record high for the 17th month in a row

US rents hit a record high for the 17th month in a row

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Average nationwide rent hit a record high of $1,879 a month in July, up 12.3% from a year ago, according to Realtor.com. Rents have been hitting new records for almost a year and a half, but there are some early signs that the market may be starting to cool. January rent increase.

Still, July rents were up at double-digit rates in all size categories compared to a year ago, with monthly studio rents up 14.3% to $1,555. One-bedroom units rose 12.2% to $1,745. 2 bedrooms increased 11.7% to $2,103.

The South and Northeast saw the biggest rental growth. With rents up 26.2% year-on-year, Miami recorded the biggest rise among his 50 largest US cities for the 10th straight month. Miami was followed by New York, Boston, Chicago and Orlando.

Many renters struggle to find affordable rental properties or choose to absorb the rent increase in their current location. But moving to a new apartment is more expensive for renters, according to Avail research included in the Realtor.com report.

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Tenants are experiencing larger price increases on new leases, averaging about $300 a month higher than previous rents compared to renewals averaging about $160 a month.

Danielle Hale, chief economist at Realtor.com, said:

Rent rises everywhere, even in ‘affordable’ suburbs

After being hit hard by the pandemic, rents in urban areas are rising slightly faster than those in suburban areas, compared with July’s 11.7% year-on-year increase in urban areas, according to Realtor.com. rent growth of 12.8%. This is a reversal from his 2.5% year-over-year fall in urban rents in January 2021 and his 3.9% rise in suburban rents.

Still, the rental situation has not returned to its pre-pandemic state. Urban areas are still expensive, but the gap between urban and urban rents is narrowing. The renter said that in July 2019 he would have paid a 12.4% surcharge for living in an urban area, but in July 2022 that surcharge was only 5.8% ($107 per month). )was.

“Suburban rents, where demand is booming due to increased remote work, are now about the same as they were three years ago when the rent premium was concentrated in urban areas,” Hale said. increase.

She said there are only a handful of days when downtown rents are cheap, as the return to office work and the allure of city living are driving a relative uptick in city rent growth. .

“Simply put, renters are feeling it everywhere,” Hale said.

Rent growth expected to slow

But there may be some relief before that.

“July data shows that rental growth is flattening out at a relatively lower pace than in 2021,” Hale said.

While 72% of landlords report plans to raise rents in the next year, Avail’s quarterly survey of landlords and tenants shows a sharp rise in January through April followed by a Rents were stable compared to the previous quarter.

When asked why they were planning to raise the rent, the landlord cited the high cost of property management costs such as paying taxes, maintenance and utilities. In addition, he has fewer landlords planning to sell their properties in July compared to January. the sales market has cooled Rents are skyrocketing, according to a survey.

“Like renters, landlords are feeling the financial pain of an inflationary economy,” said Ryan Coon, co-founder of Avail and vice president of rentals at Realtor.com.

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