Rental Market News – US rents jumped in October compared to 2020
As we approach the end of 2021 one thing is clear, the rental market is quickly moving past the losses that it sustained early in the COVID-19 pandemic.
Rents are increasing across Stockton, Modesto and much of the United States, and not a moment too soon as many owners nationwide have been struggling with staying in business while not being able to collect rent.
With state lockdowns done, and the CDC lockdown ended, what’s next for the rental market? In this article, we will answer that question and offer you tips on what to expect moving forward.
What’s Next For The Rental Market?
Average monthly rents rose by 13% since last year, with the bulk of the price surges recorded in popular metro areas, according to a new report from Redfin.
The report pins the average monthly rent nationwide in October at $1,858, a 12.5% year-over-year rise from 2020. Average rent in October in 2020 was only $1,651 but has been rising ever since.
Some metros are seeing sharper rent increases than others. Three markets in Florida — West Palm Beach, Fort Lauderdale and Miami — have all seen the average rent rise a whopping 36% year-over-year.
Areas in the New York metro area are experiencing similar growth. In New York City, Long Island’s Nassau County and New Jersey’s Newark, average rent rose 31% year-over-year. Those three markets, as well as New Brunswick, New Jersey, average the highest rent in the nation at $3,665.
Several other major markets have also seen sizable year-over-year rent increases. In Chicago, average rent is up 11.1% to $2,450. In Los Angeles, rent has increased 14.4% to $3,415, one of the highest in the nation. In San Francisco, rent is up 6.7% to $3,314.
Rising rents can contribute to issues around inflation and reflect the crunch of housing shortages in fast-growing areas, Redfin Chief Economist Daryl Fairweather said in the report.
There is one major metro in the United States that can celebrate a year-over-year decline in rent: St. Louis, Missouri, saw a 3.6% downtick to an average rent of $1,447 per month. Meanwhile, San Antonio has the lowest average rent among the major markets at $1,258.
More on Fox 40
Contact RPM Central Valley
At RPM Central Valley, we specialize in full service property management for the Central Valley rental market
Our team saves owners the time, money and hassle of managing their rental properties themselves, so they can enjoy the passive income that comes from owning investment properties.
To learn more about the property management services that we can offer you, contact us today by calling (209) 572-2222 or click here to connect with us online.