Anyone shopping for a home knows that asking prices are going up. But the situation isn’t much better for renters, a new report from Realtor.com shows.
The median monthly rental price in the US increased 11.5% year-over-year in August, to $1,633. This makes August 2021 the first month ever to see double-digit rental growth.
In 10 cities, rents have exploded. In fact, some of these locations have seen rents rise by 25% or more.
The urban areas where average rents are rising the fastest are:
- Tampa St. Petersburg-Clearwater, Florida: 30.6% year-over-year increase, to $1,760 per month
- Riverside – San Bernardino – Ontario, California: up 28.6% to $2,234
- Miami, Fort Lauderdale, West Palm Beach, Florida: an increase of 27% to $2,432
- Phoenix Mesa Scottsdale, Arizona: 25.5% increase to $1,688
- Las Vegas Henderson Paradise, Nevada: 23.4% increase to $1,515
- San Diego Carlsbad, California: 23.4% increase to $2,695
- Memphis, Tennessee, Mississippi, Arkansas: an increase of 21.8% to 1,200 USD
- Austin Round Rock, Texas: up 21.7% to $1,618
- Orlando Kissimmee Sanford, Florida: up 21.4% to $1,620
- Atlanta Sandy Springs – Roswell, Georgia: up 21.2% to $1,697
In a press release, Danielle Hill, chief economist at Realtor.com, said the increase in rents is a result of pent-up demand that was unleashed as people returned to work in offices, city life picked up and young people started looking for places of their own.
Simply put, August trends suggest that rents are making up for lost time. Rents have remained low during some of the worst months of the pandemic, growing at less than 2% from September 2020 to March 2021, which is also when prices for homes for sale were growing in double digits.”
Hill says rents may continue to grow for at least the next few months.
Rising rental prices may prompt some tenants to finally jump into home ownership. For many, this can be a wise decision.
But you shouldn’t let the fear of rising rents force you to make any hasty decisions. Home ownership can be rewarding – both financially and emotionally – but it also comes with a lot of drawbacks.
For more information, check out “10 Reasons Renting Is Better Than Buying A Home.”
However, if home ownership seems to be a good fit for you, stop by the Money Talks News Solution Center and find a great mortgage rate.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our Stories.