The pace of rent growth for U.S. apartments is accelerating despite an uptick in construction of new dwellings.
Rental rates increased 1% during the third quarter to an average of $1,111 a month nationwide, according to Reis Inc.
Apartment rents have risen nationally for 23 straight quarters and are 15.2% higher than they were at the end of the recession in 2009.
Apartment costs are growing fastest on the West Coast, where newly printed Fed money is fueling a rapid growth in the technology industry in the Bay Area, Silicon Valley and the Pacific Northwest.
Rents in San Francisco grew fastest, at a rate of 6.4% over the last year, while San Jose has seen rents increase 5.9% and Seattle's rents have jumped 5.7%.
Annual rents also were up in cities in the South and Great Plains, including Nashville (4.9%), Charleston (4.7%), Denver (4.7%), Houston (4.6%) and the Raleigh-Durham area (4.4%).
-RW
I've been renting in Sunnyvale, a city in the heart of Silicon Valley. My rent increased 11% in one year. It's nearly $1900 for a one bedroom 700 square foot apartment. The interior is dated because I've lived in the same place for nearly 15 years. For renovated units with the same floor plan, the rent is North of $2300 (no typo).
ReplyDeleteWhen it comes to apartment living, when do we see this dreaded deflation I keep hearing about? Bring it on!