Apartment Rents Continue Their Upward Trajectory
An article in GlobeSt.com describes the continued upward trend of apartment rents in the U.S.:
Apartment rents across the US increased by 2.1% from July to August—a slight cool-down from 2.5% the month before—but still continuing a trajectory of rent growth that began with a flash at the beginning of the year.
According to a new report from Apartment List, national median rent growth has increased by 13.8% since January, a staggering increase when compared to typical pre-pandemic growth, which averaged around 3.6% from 2017 to 2019.
“With rents rising virtually everywhere, only a few cities remain cheaper than they were pre-pandemic,” the report notes. “And even there, rents are rebounding quickly.”...
Apartment List suggests that the increasing incomes and budgets of renters searching on their database are related to the increasing cost of homeownership and a tight residential real estate market. The for-sale market has posted a 48% drop in listings since last year, with supply seriously constricted.
“This high demand has created a tight market, resulting in our vacancy index dropping sharply throughout 2021 as prices increase rapidly,” the report states. “Rents are now up more than 13% this year, more than doubling the overall rate of inflation.”