Trend Watch: Explaining Average Rents in the Triad due to Inflation
From TRIAD BUSINESS JOURNAL by Nakylah Carter on July 18, 2022:
"Apartment rates have increased dramatically over the past year, leaving local renters frustrated and confused about what is causing them to skyrocket.
The national average apartment rent increased to $1,736 per month in the second quarter — a 17% increase from a year ago — according to data from RealPage Market Analytics. That amounts to a $251 increase per month at a time when inflation is soaring across the nation.
The average rental costs in Greensboro and Winston-Salem were well under the nation’s average at $1,176 average rent per month in the second quarter; however, rent in the Triad was up almost $200 compared to a year ago, a 20% increase.
The Charlotte and Raleigh areas experienced increases as well. The average rent in Raleigh jumped $272 (21.5%) to $1,536. In Charlotte, rent jumped $249 (19.3%) to $1,539."
In response to what is driving the rent increase, Michael McKinney explained that we have seen historic levels of occupancy across the board with unprecedented demand. Renters may refer to "greedy landlords" when speaking about the increase in rents, but owners do not receive every dollar of rent. For every dollar of rent that is paid, owners only make 9 cents in profit.
Click on this link to read where the other 91 cents goes, why there is a large demand for apartments, and also a limited supply of them.