Cost of renting continues to steadily rise
Rent growth has gone up pretty moderately in the new year, and it forecasted to keep trending that way.
From December to January, the national average rent has gone up 3% year over year, with the average rent coming in at $1,463. This is also up $43 since last year.
While rent prices are going up, the 3% increase marks the slowest pace in 18 months, according to a new report from RentCafe.
The most expensive apartments were found in Manhattan, New York at $4,210 while the lowest rents were found in Wichita, Kansas at $662.
Out of the larger renter hubs, Washington, D.C. apartments had the highest net increase in rent in one year, at $93. Houston, Texas rentals had the lowest rise in price at $16.
RentCafe predicts that rents are likely to maintain an upward streak throughout 2020, as the number of renters continues to rise in the U.S.
From an inventory perspective, RealPage said that the multifamily residential market will see the most starts it has seen in nearly 30 years in 2020.
But, with the lack of affordable housing and increasing land and labor costs in the construction industry, there will be challenges between quality and affordability.
And according to Yardi Matrix, more than 1.5 million units have been delivered over the last five years, with an expectation of 300,000 units to be delivered in 2020.
In terms of rent hikes, Phoenix made the largest increase since last year, of 8.3%. Phoenix is a destination sought out heavily by Californians, leading to a rise in rent growth.