Rents Rise Nationwide
As home prices continue to appreciate, rents are also on the rise. Apartment search engine ABODO released their annual study surveying over 1 million rental listings across the country to calculate the average rental rate of a 1-bedroom apartment. The analysis showed that the average monthly rent change last year was .67% for a total increase of $85 from January to December.
In January of 2016, the average one-bedroom rent was approximately $949. By the time the study was completed in December 2016, the average price was $1,034. Out of the fifty states surveyed, only six states recorded marginal decreases in rent.
The top five cities with the greatest increases in rent are:
- Columbus, GA (5.5%)
- Philadelphia, PA (4.2%)
- Raleigh, NC (3.8%)
- Long Beach, CA (3.8%)
- Scottsdale, AZ (3.7%)
The S&P CoreLogic Case-Shiller Home Price Index reports steady home-price appreciation since the summer of 2016. When home values appreciate, homeowners build equity in their homes. As rents continue to rise and home prices appreciate, homeownership becomes the better long-term investment to build equity over time.
Sources: Forbes, National Mortgage Professional, HousingWire, ABODO