Now that we’re officially into 2019, we’re able to look in the rearview mirror to see what happened with multi-family rents during 2018.
A recent report from HotPads indicated that renters paid a record $504.4B in rent during 2018, an increase of $12.6B compared with 2017. HotPads reported the national median monthly rent for a one-bedroom unit to be $1,025, down -2.01% y/y; national median monthly rent for a two-bedroom unit was $1,255 in December 2018, just $1 more than January 2018.
HotPads found that 29 states saw a rise in rents and 22 states saw a decline in rents. Fluctuation rates were within 2% of the year’s previous value. Only South Dakota’s rental rates remained the same in 2018.
On an overall price basis, the District of Columbia leads the nation with an average rent of $2,358/month. South Dakota had the lowest rents on an overall price basis with a median rate of $525/month.
Cities with Highest Monthly Rents for One-Bedroom Units
San Francisco $3,535
New York City $2,895
Los Angeles $2,369
San Jose $2,319
Orlando, Las Vegas ad Phoenix also experienced hefty increases.
Cities with Lowest Monthly Rents for One-Bedroom Units
Green Bay $586
Little Rock $626
Pittsburgh, Austin and Oklahoma City had yearly declines.
HotPads forecasts rents to continue growing into 2019. According to Joshua Clark, an economist with HotPads, said, “If interest rates continue rising in 2019, more would-be homebuyers may decide to continue renting, which could put additional pressure on rent prices. Fortunately, for renters, signaling that the entire market may be leveling off would make it easier for renters to keep up with housing expenses.