The median monthly rent has climbed 3% year-over-year in June, reaching $1,483 in the U.S. today.
This is an all-time high. Home values, on the other hand, have slowed down in their appreciation to 5.2% from the 7.6% recorded back in 2018.
According to the Zillow report, rents were held back by the increase in supply, which has been ultimately digested.
What the report found also was that “Rent was up year-over-year in 49 of the nation’s top 50 markets (Milwaukee is the only exception).”
The rents were growing fastest in the following regions:
Las Vegas + 10%
Phoenix + 8.4%
Orlando + 7.4%
Jacksonville + 6.6%
Riverside + 6.3%
This is the first time that rent growth has hit 3% since 2016.
To get a better view of this trend, back in 2011, the average U. S. rent was approximately $1,250; in 2014 it reach $1,300 and it broke $1,400 in late 2016 with annual rent growth accelerating in each of the past nine months compared to the month prior.
What the numbers might represent is that as homes become more expensive, and more households are formed, demand for rents has begun to grow accordingly.
The Zillow report stated, “The median U.S. home value grew 5.2% year-over-year in June, to $227,700 – down markedly from 8.1% annual growth in January.”
In addition, the scarcity of home inventory will continue to put pressure on both buyers and renters; the number of homes for sale nationwide has fallen year-over-year in each of the past four months.