Photo: Robert Clark
The national US average rent inched higher to a new record in June.
Yet, despite a modest annual increase, average rents in many smaller US cities are rising at an accelerated pace compared to larger cities. That’s according to a report released last week by the listing site RentCafe.
“Generational and demographic changes, shifting employment opportunities, policy and economic influences are impacting the housing market and turning home buyers into renters nationally,” Doug Ressler, Director of Business Intelligence at Yardi Matrix, says in the digital release. Yardi Matrix supplied all the data used in the report.
Nationally, the average rent rose nearly 3 percent year-over-year to $1,405 in June — amounting to an increase of about $40 compared to last year at the same time.
And over the last month, the average national rent was up almost 1 percent, or $12, a “significant amount of growth compared to previous months,” writes RentCafe.
Midland, TX and Odessa, TX — both classified as small cities — recorded remarkable levels of rent growth in June.
Midland average rents were up nearly 39 percent from last year, while rents rose over just under 36 percent in Odessa in June.
Many small cities are recording high levels of annual rental price appreciation as more renters are migrating out of mid-sized and large cities to seek out better paying jobs and more affordable housing.
“With people as well as businesses rediscovering the advantages of small cities over the costly urban hubs, small cities are living up to their potential for spectacular growth – and that’s true for their rents too,” writes RentCafe.
Rents were up in 88 percent of the country’s biggest 250 cities in June compared to the same time last year. At the same time, only 2 percent of cities recorded annual declines in rent.
And, following a period of slowing growth, Manhattan rents rose by 1.5 percent annually to $4,116 in June — the highest recorded increase in the last year. Manhattan’s average rent is the highest in the county.
All of the “renter mega-hubs” — cities with a large percentage of renters, like Manhattan and San Francisco, CA — recorded steep increases in June, with the largest annual increase recorded in Orlando, FL. Average rents were up over 8 percent year-over-year in Orlando in June.
Rents continued to grow at a fast pace in Las Vegas, NV, where rents were up 7 percent from last year in June. Of the largest US cities, Las Vegas has the fastest growing rents in the country.
Click here to read the entire release.