Apartment rents across the US are skyrocketing in nearly 400 cities, with average one-bedroom prices on Rent.com 25% from June 2021, according to The typical cost of a two-bedroom unit increases by 26.5% over that period.
Reasons: Severe shortage of affordable housing, rising house prices, and skyrocketing Inflation.
It skyrocketed, and many people moved away from buying homes to renting," said Brian Carberry, senior managing editor at Apartmentguide.com. told CBS News.
The good news for Americans looking for a place to live is that rents are relatively flat this year.
"We may see a stabilization towards the end of summer," Carberry said.
The sharpest rise in rents in the national housing market is in the New York City metro area. Boston, Massachusetts. Miami, Florida; San Francisco, California; Seattle, Washington. and Austin, Texas. For example, in Austin, rents are up more than 100% compared to where he is in 2021.
"People are paying more than $1,000 a month more today than they were a year ago," says Carberry.
In New York City, the average monthly rent is he whopping $5,812. In the Austin suburb of Flugerville, Texas, the average monthly rent for him is $4,451. According to Apartmentguide.com, in Jersey City, NJ, on average, a renter can expect him to pay $4,421.
Having more stock on the market might give you some peace of mind. But as long as mortgage rates continue to rise, more Americans will lean toward renting rather than jumping into owning.
Renting is cheaper than buying in three-quarters of the nation's 50 metropolitan areas, according to Realtor.com. On average, a first-time homebuyer can expect his monthly payments to be over $2,400, compared to $1,876 for a typical apartment.
"So when that [mortgage] rate starts to go down, we might see a move from renters to buyers, but until that happens, these rental properties have a We're still seeing a lot of upward pressure," said Carberry. He said.
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