We are now plus 3.5% in annual rent increases nationwide, according to the BLS. But the latest Zumper National Rent Report (August 2015) shows that many major cities are experiencing very strong double-digit price increases:
Austin, TX – $1,170 (+17%)
Kansas City, MO – $770 (+16.7%)
Sacramento, CA – $900 (+15.4%)
San Jose, CA – $2,230 (+14.9%)
Atlanta, GA – $1,250 (+13.6%)
Dallas, TX – $1,190 (+13.3%)
San Francisco, CA – $3,500 (+12.9%)
Chicago, IL – $1,920 (+11.6%)
This, of course, is not fun for renters, and certainly dispels the idea that there is a price deflation threat.
I anticipate that rents increases will accelerate and are a harbinger of more serious across the board price inflation. You just don't see these kinds of price increases unless there is plenty of money around to support the price gains.