Median rent across the country last month was $ 1,792, up 17% from a year ago, according to a Realtor.com report. Rents for studio apartments, one bedrooms and two bedrooms have all seen double-digit increases over the past year.
February was the seventh consecutive month of double-digit rent spikes after rents rose in some big cities during the pandemic.
Daniel Hale, Chief Economist at Realtor.com, said:
In some cities, rent increases are astounding. According to the report, Miami grew fastest as February’s median rental prices surged 55% from a year ago, making it the most affordable market in the top 50 cities.
The cities with the smallest rent increases were Cleveland, Minneapolis and Detroit, where rents in February rose by just under 6% from a year ago.
San Jose, CA remains the most expensive place to rent, with a median rent of $ 3,024 per month, followed by San Diego, Los Angeles, San Francisco, Miami, and New York City.
“February data show that many renters’ budgets can grow beyond affordable prices, as rents are skyrocketing nationwide,” Hale said. I am.
Sunbelt rents are rising fastest
Sunbelt continues to attract new residents, attracted by its relatively affordable price, attractive lifestyle, and increased ability to work remotely. As a result, all 10 of the fastest growing rental markets are in the southern layers of the United States, including four in Florida.
Following Miami, the cities with the largest annual rent surges were Orlando and Tampa, Florida. Austin, Texas; San Diego; Las Vegas; Phoenix; Jacksonville, Florida; Memphis, Tennessee; San Antonio, Texas-All have rent spikes of over 23%.
According to the report, rent growth is driven by increased demand, especially from young lessors, many of which may be priced by buying a home. Miami, the report showed, house prices there are rising, Mortgage rates are rising, with February purchase prices rising 31.6% from a year ago. Hedge against further inflation. ” “But the surge in mortgage rates and the still limited number of sellers can mean that some buyers may stick to rent flexibility. Affordability for rent remains a challenge, as demand is already outpacing supply. “
Rent that occupies a larger share of income
A general rule of thumb is to keep your monthly housing costs below 30% of your monthly income. But even if wages are rising in some industries, rents are much higher, accounting for a larger percentage of monthly income.
According to Realtor.com’s analysis, the cities of Sunbelt, which are experiencing a strong inbound transition, are some of the most affordable places to rent.
The median rent in Miami, the cheapest city, is $ 2,929 per month, which accounts for nearly 60% of the median monthly income, which is a significant cost burden for renters.
The rental share of revenue was over 30% in 14 of the top 50 cities, including Los Angeles. In Los Angeles, rent accounted for 46% of monthly income. This was followed by Riverside, California at 45.9% and Tampa, Florida at 44.7%.
On the other hand, the cities that were judged to be the most affordable were those where rents were rising but not consuming more than 30% of the median income. According to analysis, Kansas City was the most affordable city to rent. February rents have risen 11% from a year ago, but the median monthly rent of $ 1,216 consumes only 20% of the median income. Other affordable cities include Oklahoma City, Denver, St. Louis, and Washington, DC.