10/01/2018
HOUSING SHORTAGE: Rents are rising at the fastest pace in almost 2 years
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The median rent in the United State rose 2.8% over past year to $1,445, the fastest pace of appreciation since May 2016, according to Zillow. Potential buyers are having an increasingly difficult time finding a home they can afford, so they are renting longer. That's pushing rental demand higher and rent prices along with it.
The median rent in the United State rose 2.8% over the past year to $1,445, the fastest pace of appreciation since May 2016, according to Zillow. Rents are rising fastest in some expected markets, like Seattle and Sacramento, Calif., and in some unexpected places, including Minneapolis and Atlanta.
National apartment occupancy was 95% at the end of last year, and that could move even higher in coming months. Construction of new apartments has been slowing, and new single-family home construction is nowhere near where it needs to be, given red-hot demand.
"The country's apartment market remains tight, with product availability generally limited to recently completed properties moving through initial leasing," said Greg Willett, chief economist at RealPage. "Unless a renter can afford that expensive new stock, finding a ready-to-lease unit takes some real work in most locations."