Rent increases are outpacing last years in most areas

by Steve Randall02 Jul 2018

Potential homeowners are being pressured even further in most of the largest US metros as rent payments are growing faster than a year ago.

Rent increases are growing faster this spring than they were in the same period of 2017 in 27 of the 35 largest metros according to a report from Zillow.

In Pittsburgh, Detroit and Houston, renters last spring were seeing monthly payments decrease, a boost for those that are saving for down payments to become first time buyers.

But in 2018, renters in those cities are facing 1% increases – and they’re not alone in seeing higher costs.

“Over the past two years, rent growth slowed across the country as new apartments hit the market and renters with the financial means to do so increasingly became homeowners," said Zillow Senior Economist Aaron Terrazas. "The slowdown in rent growth was most prominent in the markets that moved most quickly to add units – either because it was easy to build or because of local demands. But the ever-swinging pendulum is again on the move.”

He added that rent growth was slower where greater supply was added but notes that rent rises have now perked up again nationwide, albeit at different timelines in local markets.

“The ebb-and-flow of supply and demand is following slightly different timeliness in different markets, but over the past two years, we have seen similar trends in markets from the Southeast to the Northwest," he said.

Metropolitan Area

YoY Rent Growth in May 2017

YoY Rent Growth in May 2018

Zillow Rent Index (ZRI)

Zillow Home Value Index (ZHVI)

YoY ZHVI Change

YoY Inventory Change

United States

0.70%

2.10%

$ 1,440

$ 216,000

8.1%

-5.3%

New York, NY

-1.90%

0.90%

$ 2,378

$ 428,200

7.2%

-2.3%

Los Angeles-Long Beach-Anaheim, CA

4.20%

3.50%

$ 2,751

$ 644,900

8.0%

1.4%

Chicago, IL

-1.00%

0.90%

$ 1,638

$ 219,700

5.8%

-3.8%

Dallas-Fort Worth, TX

2.90%

1.20%

$ 1,595

$ 227,500

11.5%

32.6%

Philadelphia, PA

-1.00%

1.00%

$ 1,568

$ 227,300

6.2%

-5.0%

Houston, TX

-2.70%

1.20%

$ 1,550

$ 197,400

5.4%

-2.6%

Washington, DC

-0.10%

1.20%

$ 2,131

$ 400,000

4.5%

25.6%

Miami-Fort Lauderdale, FL

-1.80%

1.00%

$ 1,863

$ 271,900

8.0%

1.4%

Atlanta, GA

2.90%

4.00%

$ 1,393

$ 203,200

11.4%

-15.1%

Boston, MA

3.20%

1.20%

$ 2,359

$ 453,200

7.0%

-6.3%

San Francisco, CA

-0.40%

1.80%

$ 3,398

$ 949,800

11.2%

-4.4%

Detroit, MI

-1.30%

3.60%

$ 1,195

$ 154,100

9.9%

-1.5%

Riverside, CA

3.00%

6.50%

$ 1,895

$ 357,200

8.8%

3.2%

Phoenix, AZ

1.90%

4.00%

$ 1,366

$ 253,300

7.9%

-11.3%

Seattle, WA

5.80%

3.30%

$ 2,179

$ 490,200

12.2%

-6.9%

Minneapolis-St Paul, MN

3.10%

3.50%

$ 1,636

$ 260,700

7.9%

-7.3%

San Diego, CA

2.70%

3.00%

$ 2,542

$ 584,100

7.3%

19.8%

St. Louis, MO

0.10%

0.40%

$ 1,139

$ 160,400

5.1%

-5.8%

Tampa, FL

2.10%

2.70%

$ 1,386

$ 203,700

11.5%

-1.4%

Baltimore, MD

-0.80%

1.50%

$ 1,739

$ 264,600

4.9%

8.9%

Denver, CO

0.10%

2.80%

$ 2,051

$ 398,000

7.9%

-15.4%

Pittsburgh, PA

-5.20%

1.90%

$ 1,079

$ 140,600

7.7%

-13.0%

Portland, OR

3.60%

1.50%

$ 1,835

$ 389,800

5.8%

17.6%

Charlotte, NC

1.00%

3.40%

$ 1,293

$ 194,400

11.0%

8.3%

Sacramento, CA

4.50%

6.40%

$ 1,843

$ 399,100

7.0%

-5.9%

San Antonio, TX

1.00%

0.90%

$ 1,335

$ 184,200

5.9%

11.1%

Orlando, FL

2.70%

3.60%

$ 1,445

$ 225,000

9.6%

-10.5%

Cincinnati, OH

1.10%

2.00%

$ 1,276

$ 159,600

6.2%

-7.2%

Cleveland, OH

0.80%

0.10%

$ 1,140

$ 140,500

7.2%

-10.0%

Kansas City, MO

1.80%

0.60%

$ 1,266

$ 179,700

8.8%

-5.4%

Las Vegas, NV

0.80%

4.40%

$ 1,302

$ 261,900

15.5%

n/a

Columbus, OH

0.80%

2.90%

$ 1,333

$ 181,600

9.4%

-10.8%

Indianapolis, IN

-0.40%

0.90%

$ 1,197

$ 150,800

7.3%

n/a

San Jose, CA

-1.20%

1.80%

$ 3,500

$ 1,265,300

25.7%

-6.3%

Austin, TX

-1.00%

-0.50%

$ 1,680

$ 295,100

5.5%

-0.3%

Zillow Research

 


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