In the US, rental prices jumped up: where the cost rose the most

Rental prices are skyrocketing across the country, and the number of people looking to rent an apartment has returned to pre-pandemic levels or even higher. As quarantine restrictions expire, including a moratorium on evictions, and the available housing stock continues to decline, it is expected that rental prices will rise further. Writes about it Axios.

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According to the Dwellsy platform, which calls itself the largest rental market in the country, in 2021, rents in the country will grow by 9,6% and will average $ 1649 per month.

“Leasing activity has returned to pre-pandemic levels. It grew by 13% in the first half of 2021 compared to the same period last year,” the company said in a statement. As it turns out, the two groups that are increasing their rent the most are Generation Z and high-income millennials.

“Each of the country's 100 largest metro areas has seen month-over-month rent increases over the past five months,” said Apartment List economist Christopher Salviati.

Low-income urbanites are particularly at risk, and some are likely to face homelessness. According to Bloomberg, the rent hike "20% or more makes life difficult" for them, "just like the end of the bans on evictions and quarantine benefits for unemployment."

On the subject: How much does it cost to rent housing in different parts of the United States: data by state

Rental rates increased by an average of 11,5%, or $ 200, compared to August last year. The cities with the steepest rent increases include Boise (Idaho) and Phoenix (Arizona).

What's going on

In 2020, people left cities like New York to avoid crowds and get more room to live and work, and many landlords stuck with empty apartments have lowered prices and offered rental benefits.

But now, “the most ambitious landlords are trying to raise rents by as much as 80%,” said a broker from Warburg Realty.

Bidding wars “break out over rentals in some popular areas,” which usually only happen in the market for housing for sale.

And this is not just a rental. Property prices across the board are going up like crazy.

In June 2021, U.S. home values ​​rose 24,8% year-over-year to a median sales price of $386. During the same period, the number of homes sold increased by 888%, while the number of homes for sale decreased by 20,6%.

Frenzy swept the Manhattan real estate market, where average resale prices hit a record high in the second quarter.

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“The rental market in the US is in disarray right now,” said Jonas Bordo, CEO and co-founder of Dwellsy. “Demand is strong due to record household growth and a number of other factors, while supply is constrained by a hot housing market and slower supply of new properties.”

But while rentals seem to be getting more expensive everywhere, different companies tracking this phenomenon see different trends.

RENTCafé, an apartment search site, reports that New York, NY has had “the most impressive comeback ever. The city topped the trend, with rental activity doubling from last year, while San Francisco, California, had the second largest increase in the number of moving tenants. ”

According to its list of the highest rents for August 2021, Manhattan ranks first at over $ 4 per month, followed by Los Angeles (California), Seattle (Washington), Washington (DC) and Chicago (Illinois).

Dwellsy claims that its rental database is much larger than that of RENTCafé and that it ranks metro areas rather than submarkets like Manhattan, placing the NYC metro as the 15th most expensive city in terms of monthly rentals. board.

Some of the most expensive rental markets at the top of his list are the outskirts of hot markets: Silverthorne, Colorado, is about 70 miles from Denver—about the same distance as Santa Cruz, California, from San Francisco.

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