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Rather, he said, “For market-rate rentals, there’s a tidal wave of pent-up demand that far exceeds available supply. For Boise, that percentage went from 29% to 51%.īut Parsons said affordability isn’t at the core of the crisis. When taking area wages into account, rent affordability decreased as much as 21.7% in a place like Boise, ID, in 2021, compared with 2017, according to Online Mortgage Advisor (opens in new tab), which compared the percentage of income required to pay the rent. Moreover, several other Florida cities had explosive growth in rent prices, including Aventura, Coral Gables, Delray Beach, Doral, Fort Lauderdale, Hialeah, West Palm Beach, Tampa and Orlando. Zumper’s report says Miami had the most rent growth of any city in 2021, pushing its way up their list of most expensive cities. They were also the places that saw the biggest declines in rent and home prices back in the great financial crisis and took a longer route to recover.” Additionally, these markets simply tend to be more volatile historically. They’ve benefited from strong economic growth, as well as the appeal of destination markets in a work-from-anywhere environment. “First,” Parsons says, “these areas are seeing a ton of demand and in-migration from other states. Overall, Jay Parsons, vice president and head of economics at RealPage, a firm that provides property-managment software, said the biggest increases have been in Florida and the desert region. (opens in new tab), which helps people find rental homes, lists the cities with the highest median rent prices for one-bedroom apartments: Its top five increases for one-bedroom rentals: It seems every real estate company has different criteria for assessing geographic rent trends and averages.Īccording to Redfin, for example, the five metro areas with the biggest rent increases since last year are: Generally, experts say, the sunbelt is seeing the biggest increases, although New York and New Jersey are also hard hit. Where Are Rent Increases Hitting Hardest? And remote workers moving may be contributing to the upward pressure on rents in some areas that have drawn an influx of new residents. But rent increases are having the biggest impact on low-paid workers who are less likely to have remote employment as an option. One COVID-inspired change - the increase in telework - may actually prove beneficial, giving some renters flexibility to move to lower-rent areas, Walter noted. ![]() ![]() ![]() Will Inflation Derail Your Retirement Plan?
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