Rents are moving but while some of the hottest markets are becoming less expensive for renters, those that were more affordable are taking a bigger bite out of paychecks.
A report from HotPads shows that US median rent has increased by an 3.2% year-over-year to $1,560 a month. That growth is in line with the last 6 months following a period of faster growth since the middle of 2018.
In San Jose, San Francisco, Los Angeles and San Diego – the four most expensive rental markets in the country – annual rent appreciation has dropped two-tenths of a percentage point or more from May 2019. San Diego’s median rent is currently $2,790, up 3.7% year-over-year.
Meanwhile, in some of the more affordable markets, rent appreciation is well-above average, such as Cincinnati with a 4.9% year-over-year rise to $1,300.
"The rental market is being pulled in several directions right now," said Joshua Clark, economist at HotPads. "Some of the hottest markets have hit their turning point after a year or more of increases, while other areas are steadily on the rise, causing appreciation to stall on a national level. However, this push-and-pull effect is likely temporary. Demand in the rental market typically slows in cooler months, while low mortgage rates may encourage more renters to buy – together, these factors could lead to a slower rental market throughout the remainder of 2019."
More market update: