SAN FRANCISCO, July 2, 2019 /PRNewswire/ -- As the rental
market continues to heat up nationwide, rent prices are rising the
fastest in sun belt cities, according to the latest quarterly
HotPads® Rent Report. Of the 10 fastest-rising rental markets in
the United States, only one –
Salt Lake City – is not in the sun
belt.
Phoenix has the fastest-rising
rents out of the 50 largest metro areas, followed closely by
Las Vegas. The median rent in
Phoenix is $1,545 a month, up 6.9 percent compared to this
time last year. The median rent in Las
Vegas is $1,465 a month, up
6.8 from a year ago. After Phoenix
and Las Vegas, the fastest rising
rents are in Sacramento,
Atlanta, Riverside and Orlando, where rent prices are rising more
than 5 percent annually.
Overall, the U.S. median rent is $1,545 a month, up 3.2 percent from a year ago.
Across the country, the rental market has been on an upward swing
since the second half of 2018. In the first quarter of 2019, rents
rose at a rate of 3.1 percent annually. A year ago, rents were
rising 3 percent annually.
Austin, Phoenix and San
Jose – all sun belt cities – have seen the highest gains in
rental appreciation over the past year. In Austin, the median rent is $1,775 per month, up 3.6 percent from a year ago.
This time last year, rents in Austin were rising just 1.1 percent
annually.
While rent prices do typically peak in the late spring and early
summer, this recent upswing in rent growth is part of a longer-term
trend. As rent prices continue to climb faster, other signs of a
stagnant rental market – like rent discounts and other move-in
specials – have faded in popularity, and more renters are facing
affordability concerns.
"The rental market has been heating up over the past year, and
renters hoping for a break in prices this year probably shouldn't
hold their breath," said Joshua
Clark, economist at HotPads. "Permits for new construction
have been stagnant and wage growth has been making a comeback,
indicating that there will continue to be less supply and more
demand through the busy summer season. While low mortgage rates and
relief in home prices could give renters an incentive to enter the
housing market, those who aren't ready or able to buy will continue
to see rent appreciation climb."
Houston, New Orleans, Baltimore and New
York have the slowest-rising rents out of the 50
largest metro areas. In each of these markets, rents are less
than 2 percent higher than they were last year. However, the rental
market in many of these areas is still speeding up – at this time
in 2018, rents in New Orleans,
Baltimore and New York rose less than 1.5 annually.
Compared to this time last year, rent appreciation has slowed
the most in Sacramento, followed
by Seattle and San Diego. Despite this slow down, the rental
market in each of these areas is still comparatively strong –
prices in these areas are still higher than the national median,
and rents are rising faster than the national pace.
HotPads is a Zillow® Group-owned apartment and home search
platform for renters in urban areas across the United States. For more information on the
U.S. rental market, visit HotPads.com.
Metropolitan
Area
|
Median
Rent
|
Median Rent
YoY
(Q2 2019)
|
Median Rent
YoY
(Q2 2018)
|
United
States
|
$1,545
|
3.2%
|
3.0%
|
New York,
NY
|
$2,400
|
1.8%
|
1.2%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$2,985
|
4.1%
|
4.6%
|
Chicago,
IL
|
$1,800
|
2.2%
|
1.9%
|
Dallas-Fort Worth,
TX
|
$1,695
|
3.2%
|
3.4%
|
Philadelphia,
PA
|
$1,700
|
2.9%
|
2.1%
|
Houston,
TX
|
$1,595
|
1.4%
|
2.0%
|
Washington,
DC
|
$2,200
|
2.3%
|
1.3%
|
Miami-Fort
Lauderdale, FL
|
$2,045
|
2.7%
|
2.1%
|
Atlanta,
GA
|
$1,510
|
5.8%
|
4.9%
|
Boston, MA
|
$2,450
|
3.0%
|
3.4%
|
San Francisco,
CA
|
$3,560
|
3.7%
|
3.3%
|
Detroit,
MI
|
$1,320
|
3.7%
|
3.8%
|
Riverside,
CA
|
$2,010
|
5.5%
|
5.7%
|
Phoenix,
AZ
|
$1,545
|
6.9%
|
5.2%
|
Seattle,
WA
|
$2,270
|
4.1%
|
5.0%
|
Minneapolis-St Paul,
MN
|
$1,715
|
3.8%
|
4.0%
|
San Diego,
CA
|
$2,765
|
4.3%
|
5.0%
|
St. Louis,
MO
|
$1,220
|
2.5%
|
2.0%
|
Tampa, FL
|
$1,510
|
4.9%
|
4.2%
|
Baltimore,
MD
|
$1,760
|
1.7%
|
0.9%
|
Denver, CO
|
$2,145
|
4.0%
|
3.5%
|
Pittsburgh,
PA
|
$1,125
|
3.3%
|
1.8%
|
Portland,
OR
|
$1,970
|
3.3%
|
2.8%
|
Charlotte,
NC
|
$1,415
|
4.7%
|
3.7%
|
Sacramento,
CA
|
$2,030
|
5.9%
|
7.1%
|
San Antonio,
TX
|
$1,405
|
2.7%
|
2.2%
|
Orlando,
FL
|
$1,565
|
5.2%
|
5.2%
|
Cincinnati,
OH
|
$1,275
|
4.3%
|
3.3%
|
Cleveland,
OH
|
$1,220
|
3.2%
|
2.0%
|
Kansas City,
MO
|
$1,270
|
2.8%
|
3.1%
|
Las Vegas,
NV
|
$1,465
|
6.8%
|
5.5%
|
Columbus,
OH
|
$1,475
|
4.2%
|
3.8%
|
Indianapolis,
IN
|
$1,250
|
3.5%
|
2.9%
|
San Jose,
CA
|
$3,760
|
4.2%
|
2.5%
|
Austin, TX
|
$1,775
|
3.6%
|
1.1%
|
Virginia Beach,
VA
|
$1,500
|
2.1%
|
1.4%
|
Nashville,
TN
|
$1,535
|
2.9%
|
2.6%
|
Providence,
RI
|
$1,820
|
4.3%
|
3.9%
|
Milwaukee,
WI
|
$1,395
|
2.2%
|
1.7%
|
Jacksonville,
FL
|
$1,425
|
4.6%
|
3.8%
|
Memphis,
TN
|
$1,065
|
3.2%
|
2.0%
|
Oklahoma City,
OK
|
$1,130
|
2.0%
|
1.3%
|
Louisville-Jefferson
County, KY
|
$1,150
|
3.1%
|
3.2%
|
Hartford,
CT
|
$1,695
|
2.5%
|
1.6%
|
Richmond,
VA
|
$1,480
|
3.9%
|
3.6%
|
New Orleans,
LA
|
$1,460
|
1.5%
|
1.3%
|
Buffalo,
NY
|
$1,300
|
3.4%
|
3.3%
|
Raleigh,
NC
|
$1,495
|
3.4%
|
2.5%
|
Birmingham,
AL
|
$1,070
|
3.6%
|
2.1%
|
Salt Lake City,
UT
|
$1,645
|
4.7%
|
4.8%
|
HotPads
HotPads is an efficient rental search platform for urban areas
across the United States, with
features designed for competitive markets such as map-based search,
real-time notifications and detailed information on landlords and
property managers that help renters spend less time searching and
more time feeling excited about their next home.
Launched in 2005, HotPads is based in San Francisco and is owned and operated by
Zillow Group, Inc. (NASDAQ: Z and ZG).
HotPads is a registered trademark of Zillow, Inc.
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SOURCE HotPads