Apartment rents are soaring in hundreds of U.S. cities, and here’s why.


Apartment rents have soared in nearly 400 U.S. cities, with the average price of a one-bedroom up more than 25% since June 2021, according to Rent.com. The typical cost of a two-bedroom unit rose 26.5% during this period.

Why: Severe shortage of affordable housing, rising and soaring home prices inflation.

“At the end of 2020 and early 2021, there was a lot of people wanting to buy, and then the housing market really skyrocketed – a lot of people were turned away From buying to rentingBrian Carberry, senior executive editor of Apartmentguide.com, told CBS News.

The good news for Americans looking for a place to live is that rents have remained relatively flat this year.

“As we move into late summer, we may start to see stabilization,” Carberry said.

National real estate markets with the largest rent increases: New York City metro area; Boston, MA; Miami, FL; San Francisco, CA; Seattle, WA; and Austin, TX. In Austin, for example, rental prices are up more than 100% compared to 2021.

“People are paying more than $1,000 a month now compared to a year ago,” Carberry said.


Tampa Bay residents face soaring housing costs

02:34

In New York City, the average monthly rent is as high as $5,812. In Pflugerville, a suburb of Austin, Texas, the average monthly rent is $4,451. In Jersey City, NJ, renters can pay an average of $4,421, according to Apartmentguide.com.

More inventory coming into the market may provide some relief. But as long as mortgage rates remain high, more Americans will be inclined to rent rather than devote themselves to home ownership.

In three-quarters of the nation’s 50 largest metro areas, renting is cheaper than buying, according to Realtor.com. On average, first-time homebuyers can expect to pay $2,400 a month, compared with $1,876 for a typical apartment.

“So when that [mortgage] Rates start to come down, and then we may start to see some changes from tenants to buyers, but until then we’re still seeing a lot of upward pressure on these rental properties,” Carberry said.



Source link

Leave a Reply

Your email address will not be published.