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Rents Skyrocket at Highest Rate
July 23rd, 2016 12:25 PM

Rents Skyrocket at Highest Rate in almost a Decade

Rent Set to Exceed $535 Billion Paid Last Year | Keeping Current Matters
The Consumer Price Index (CPI) was released by the Labor Department last week. An analysis by Market Watch revealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That's the strongest yearly price gain since 2007. This coincides with a report released earlier this month in which AxioMetrics announced that rents are continuing to increase in 2016. The report revealed:
  • There was a 3.7% increase in effective rents in the second quarter of 2016 as compared to the same period last year.
  • That the effective rent growth this quarter compared to last quarter was 2.3%.
  • Annual effective rent growth was positive in 49 of the top 50 markets, based on number of units. Only Houston was negative, at -1.4%, as the fallout from energy-industry job losses and excess construction continues.

Here is a graph to illustrate the rate of increase over the last several years:

Rent Set to Exceed $535 Billion Paid Last Year | Keeping Current Matters

Bottom Line

With rents continuing to rise and mortgage interest rates still at historic lows, meet with a local real estate professional who can help determine if you could turn your monthly rental cost into a home of your own. 

Posted by Cheryl Talbot ABR,GRI,e-PRO,MRP,SFR on July 23rd, 2016 12:25 PMPost a Comment

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