Printer Friendly

Rents Growth Accelerates After a Relatively Flat 12 Months.

Byline: Staff Report

Across the U.S., rent growth is picking up its pace following a year of relatively stagnant appreciation, according to the latest quarterlyHotPads Rent Report.

The U.S. median rent is$1,530per month, up 3.1 percent from a year ago.Rent growth slowed in 2018, but appreciation has been on the rise in recent months. Now, rent growth is at its highest level sinceAugust 2017.

Compared to this time last year, rents are rising faster in 36 of the country's 50 largest metro areas.Austinhad the largest increase in rental appreciation, followed byPhoenixandSan Jose. The median rent inAustinis$1,760, up 3.2 percent from a year ago last year at this time, rents inAustinrose 1 percent annually.

WhileAustin'srent appreciation had the largest jump, rents inPhoenixare still rising faster than any other market analyzed. The median rent inPhoenixis$1,510per month, up 6.6 percent over the past year. A year ago,Phoenixrents rose 4.9 percent annually.

While rent prices have been rising for the past six yearsi, the pace of appreciation started to slow in 2016 as the economy recovered and construction halted by the recession came online. With income growth beginning to outpace rent appreciation nationwide, housing affordability is a top concern in many of the nation's largest markets.

"We have entered a new phase in the housing cycle," saidJoshua Clark, economist at HotPads. "A year ago, the country was experiencing slowing rental markets and tighter for-sale markets. Today, most of the country is experiencing the opposite: The rental market is picking up the pace, while prospective home buyers have been better equipped to get off the sidelines as the housing market cools. This is a welcome shift for renters who have been waiting to buy, but those who continue to rent will face a high-pressure market through the busy summer season."

While rent growth picked up in most of the nation's largest metro areas, many historically hot rental markets cooled over the past year. InFebruary 2018,SacramentoandSeattlehad the country's fastest-rising rents. Now, rent growth has declined more inSacramentoandSeattlethan in any other metro area analyzed annual rent appreciation slowed from 7.7 percent to 5.9 percent inSacramento, and from 5.9 percent to 4.1 percent inSeattle.

HotPads is a Zillow Group-owned apartment and home search platform for renters in urban areas acrossthe United States. For more information on the U.S. rental market, visitHotPads.com.

Copyright {c} 2019 BridgeTower Media. All Rights Reserved.

COPYRIGHT 2019 Dolan Media
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:The Mecklenburg Times (Charlotte, NC)
Date:May 14, 2019
Words:413
Previous Article:Gen Xers' Adult Children Influence Their Buying Decisions, Younger Millennials Become Buying Force According to Realtor Report.
Next Article:Home Shoppers Remain Optimistic but Believe a Recession is on the Horizon.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters