Rents are rising and will likely continue to accelerate in 2020, that according to the latest Market Report from Zillow.
Apartment rents grew 2.3% year-over-year, driving the median U.S. rent up to $1,600 per month. At the same time, housing values showed the lowest growth since February 2013, and inventory of for-sale homes fell.
With fewer homes on the market, national rent growth is projected to rise in 2020.
This rent growth was evident in much of the country, except in Columbus and Houston, which saw drops.
According to the report, the best rental markets currently are Phoenix, where rents rose 6.4%, Las Vegas, 5.2%, and Charlotte at 4%.
For-sale housing inventory decline was most notable in lower-priced homes. That may be keeping more people in the rental market, according to the report. That is expected to increase demand and bump up rents next year.
Zillow’s Director of Economic Research Skylar Olsen credits positive economic indicators, including low unemployment and continuing wage growth, for the national trend. “The story of today’s rent growth is far from just that of a few expensive superstar cities – rather, growing demand for rental housing is bumping up against limited housing supply and low vacancies all across the country,” he says.
Zillow is the leading real estate and rental marketplace and a trusted source for data, inspiration and knowledge among both consumers and real estate professionals. For more, visit Zillow.com.
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