In 2019, we saw historically low vacancy rates with occupancy rates as high as 96.3% and rising rental costs. Confirming this statement is a recent report for Abodo that indicates rental prices were up in 38 states while the other states saw rental rates decrease only slightly.
- One bedroom rental rates rose +4.1% to $1,078
- Two bedroom rental rates rose +5.5% to $1,343
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Rental rates in Utah surged +3.78% to $965/month for a one bedroom, according to realtor.com. According to Abodo, “In states like Utah, people are relocating for jobs. Many folks are coming from California and other higher priced hubs. People need to find places where they can live and afford to live a lifestyle that they want.”
Among the most costly rental rates were states including…
- Massachusetts at $2,218/month for a one bedroom
- California’s San Francisco at $3,877/month for a one bedroom
- New York City at $3,082/month for a one bedroom
Detroit, according to Abodo, “is seeing a housing boom. There are more people moving there, which increases the demand for housing as the city begins to come back. New construction has actually started there, which is obviously going to cost more.” And as a result of Detroit’s in-migration, rental rates for a one bedroom increased +7.48% to $886/month.
Among states where rental rates came down in 2019 were…
- Montana rental rates decreased -1.6% to $745/month for a one bedroom
- Dayton OH saw average rental rates drop -4.11% to $758/month for a one bedroom
- Toledo OH rental rates came in at $517/month for a one bedroom.
The very latest on rent rate growth just came in from Zumper in its monthly National Rent Report for January 2020… one bedroom rent rates declined slightly from December 2019 by -0.4% to $1,217/month and -0.3% to $1,460 for a two bedroom unit. Zumper’s report indicated, “Notable markets with large y/y changes included NYC with one and two bedroom rent growth at +9% and rent on a Washington DC one-bedroom unit increasing by +7.6% and a two-bedroom unit rent growth increasing to +15.2%.
Des Moines Iowa had the fastest monthly rent growth rate for a one-bedroom unit by +4.9% to $860. Conversely, San Diego rent growth experienced a monthly decline of -8% for a one-bedroom unit while Laredo TX monthly rent growth for a one-bedroom unit experienced a -14.5% decline.
Thanks to HousingWire’s Julia Falcon and Alcynna Lloyd for source data.