Photo: Salvador Drusin/Flickr
Popular online real estate listing service Zillow has released its October rent estimates for 35 major US real estate markets.
Zillow’s rent index, part of its October Real Estate Market Reports, draws on its database of single-family homes, condos, co-ops, and apartments to estimate median rents for the previous month.
Nationally, rents were 4.5 percent higher in October than they were the month before, according to Zillow’s numbers. This increase is smaller than the 5.3 percent jump that occurred from August to September, the firm said.
“Rental appreciation has started to slow down in part due to more rental supply,” said Svenja Gudell, Zillow’s chief economist, in a statement.
“Many of the bigger multifamily rental projects that were begun a couple years ago in cities nationwide are finally starting to open for occupancy, easing pressure on rents somewhat.”
However, Gudell noted that the “rental affordability crisis” of recent years persists. “It will take a lot more supply, and a lot more renters-turned-homeowners, to fully reverse this trend,” he explained.
In October, four of the 10 most-expensive rental markets were in California. San Jose topped the list with a median rent of $3,398, up 11 per cent from the same time the year before.
Rents appreciated the fastest in San Francisco, the country’s second-priciest rental market. The estimated median rent in The Golden Gate City was $3,303 last month, a 15.2 per cent increase over October 2014.
Zillow points out that rents had grown year-over-year by as much as 19 percent this past June and July.
Home values dropped slightly year-over-year in two markets — Baltimore and Washington — but all markets saw median rents increase during that same period.
Cleveland experienced the smallest year-over-year rent rise. There, the median rent was $1,130 last month, up 0.3 percent from October 2014.
The market with the cheapest estimated rent last month was Pittsburgh at $1,097, up 2.4 per cent from the same time the year before.
The 10 most-expensive US median rents
1. San Jose, CA $3,398
2. San Francisco, CA $3,303
3. Los Angeles-Long Branch-Anaheim, CA $2,485
4. New York-Northern New Jersey $2,355
5. San Diego, CA $2,316
6. Boston, MA $2,239
7. Washington, DC $2,112
8. Denver, CO $1,946
9. Seattle, WA $1,912
10. Miami, Ft. Lauderdale, FL, $1,812