SAN FRANCISCO, March 29, 2019 /PRNewswire/ -- Across the
U.S., rent growth is picking up its pace following a year of
relatively stagnant appreciation, according to the latest quarterly
HotPads® Rent Report.
The U.S. median rent is $1,530 per
month, up 3.1 percent from a year ago. Rent growth slowed in 2018,
but appreciation has been on the rise in recent months. Now, rent
growth is at its highest level since August
2017.
Compared to this time last year, rents are rising faster in 36
of the country's 50 largest metro areas. Austin had the largest increase in rental
appreciation, followed by Phoenix
and San Jose. The median rent in
Austin is $1,760, up 3.2 percent from a year ago – last
year at this time, rents in Austin
rose 1 percent annually.
While Austin's rent
appreciation had the largest jump, rents in Phoenix are still rising faster than any other
market analyzed. The median rent in Phoenix is $1,510 per month, up 6.6 percent over the past
year. A year ago, Phoenix rents
rose 4.9 percent annually.
While rent prices have been rising for the past six
yearsi, the pace of appreciation started to slow in 2016
as the economy recovered and construction halted by the recession
came online. With income growth beginning to outpace rent
appreciation nationwide, housing affordability is a top concern in
many of the nation's largest markets.
"We have entered a new phase in the housing cycle," said
Joshua Clark, economist at HotPads.
"A year ago, the country was experiencing slowing rental markets
and tighter for-sale markets. Today, most of the country is
experiencing the opposite: The rental market is picking up the
pace, while prospective home buyers have been better equipped to
get off the sidelines as the housing market cools. This is a
welcome shift for renters who have been waiting to buy, but those
who continue to rent will face a high-pressure market through the
busy summer season."
While rent growth picked up in most of the nation's largest
metro areas, many historically hot rental markets cooled over the
past year. In February 2018,
Sacramento and Seattle had the country's fastest-rising
rents. Now, rent growth has declined more in Sacramento and Seattle than in any other metro area analyzed
– annual rent appreciation slowed from 7.7 percent to 5.9 percent
in Sacramento, and from 5.9
percent to 4.1 percent in Seattle.
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
(Q1 2019)
|
Median Rent
YoY
(Q1 2018)
|
United
States
|
$1,530
|
3.1%
|
3.0%
|
New York,
NY
|
$2,380
|
1.4%
|
1.4%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$2,950
|
4.2%
|
4.8%
|
Chicago,
IL
|
$1,785
|
2.1%
|
2.0%
|
Dallas-Fort Worth,
TX
|
$1,675
|
3.0%
|
3.5%
|
Philadelphia,
PA
|
$1,685
|
2.8%
|
2.0%
|
Houston,
TX
|
$1,585
|
1.8%
|
1.1%
|
Washington,
DC
|
$2,185
|
2.1%
|
1.4%
|
Miami-Fort
Lauderdale, FL
|
$2,040
|
2.8%
|
2.0%
|
Atlanta,
GA
|
$1,485
|
5.7%
|
4.8%
|
Boston, MA
|
$2,425
|
3.0%
|
3.6%
|
San Francisco,
CA
|
$3,525
|
3.8%
|
3.3%
|
Detroit,
MI
|
$1,305
|
3.8%
|
3.6%
|
Riverside,
CA
|
$1,980
|
5.6%
|
5.6%
|
Phoenix,
AZ
|
$1,510
|
6.6%
|
4.9%
|
Seattle,
WA
|
$2,245
|
4.1%
|
5.9%
|
Minneapolis-St Paul,
MN
|
$1,695
|
3.6%
|
4.1%
|
San Diego,
CA
|
$2,740
|
4.7%
|
5.2%
|
St. Louis,
MO
|
$1,205
|
2.3%
|
1.9%
|
Tampa, FL
|
$1,490
|
5.1%
|
3.7%
|
Baltimore,
MD
|
$1,750
|
1.4%
|
1.0%
|
Denver, CO
|
$2,125
|
4.1%
|
3.6%
|
Pittsburgh,
PA
|
$1,110
|
3.2%
|
1.6%
|
Portland,
OR
|
$1,950
|
3.2%
|
3.2%
|
Charlotte,
NC
|
$1,400
|
4.6%
|
3.7%
|
Sacramento,
CA
|
$1,995
|
5.9%
|
7.7%
|
San Antonio,
TX
|
$1,390
|
2.5%
|
2.3%
|
Orlando,
FL
|
$1,540
|
5.9%
|
4.3%
|
Cincinnati,
OH
|
$1,250
|
3.7%
|
3.4%
|
Cleveland,
OH
|
$1,210
|
3.1%
|
2.0%
|
Kansas City,
MO
|
$1,260
|
2.7%
|
3.2%
|
Columbus,
OH
|
$1,450
|
4.0%
|
3.6%
|
Indianapolis,
IN
|
$1,240
|
3.1%
|
2.8%
|
San Jose,
CA
|
$3,720
|
3.9%
|
2.3%
|
Austin, TX
|
$1,760
|
3.2%
|
1.0%
|
Virginia Beach,
VA
|
$1,485
|
1.9%
|
1.3%
|
Nashville,
TN
|
$1,515
|
2.6%
|
2.9%
|
Providence,
RI
|
$1,790
|
4.3%
|
4.0%
|
Milwaukee,
WI
|
$1,385
|
2.1%
|
1.4%
|
Jacksonville,
FL
|
$1,405
|
4.8%
|
3.3%
|
Memphis,
TN
|
$1,050
|
2.8%
|
1.5%
|
Oklahoma City,
OK
|
$1,120
|
1.8%
|
0.9%
|
Louisville-Jefferson
County, KY
|
$1,140
|
3.1%
|
3.5%
|
Hartford,
CT
|
$1,675
|
2.2%
|
1.5%
|
Richmond,
VA
|
$1,470
|
4.1%
|
3.3%
|
New Orleans,
LA
|
$1,450
|
1.5%
|
1.1%
|
Buffalo,
NY
|
$1,280
|
3.5%
|
2.8%
|
Raleigh,
NC
|
$1,480
|
3.3%
|
2.5%
|
Birmingham,
AL
|
$1,060
|
3.5%
|
1.9%
|
Salt Lake City,
UT
|
$1,625
|
5.0%
|
4.4%
|
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.
i Rents have risen year-over-year every month since
December 2012, the earliest month
available from HotPads data.
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content:http://www.prnewswire.com/news-releases/rents-growth-accelerates-after-a-relatively-flat-12-months-300820869.html
SOURCE Hotpads, Inc.