Rent hikes plus rental bidding wars have jacked up rents to new highs.
Largest Monthly Gain in Rents Since 1987
According to the Bureau of Labor Statistics, the seasonally adjustable index for rent in the US increased 0.6% from January to February, the largest month-to-month gain since 1987.
Without any adjustments, renters are paying more for rent this year than they paid last year, a hefty +4.2% y/y more.
“There’s still further (rent increase) strength to be seen,” said Wells Fargo senior economist Sarah House. “We don’t expect (rent increases) to peak until maybe the third quarter.”
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Nationwide Rent Increases Across Major Markets
Rents hit a record average of $3,700 in February, according to a report by the appraisal firm Miller Samuel for Douglas Elliman. This record figure of $3,700 was just the headline for rentals. Units averaged only 24 days on the market and renters had a one-in-five chance of facing a bidding war.
San Francisco Bay Are rents rebounded to nearly pre-pandemic levels in February. Coming back from the most pandemic-pummeled rental markets in the nation, San Francisco rents increased +16% y/y and San Mateo rents increased +17% y/y in February.
The highest rent gains in the country during February happened in Miami. With an increase of +31% in 2021, Miami’s rental market is now one of the least affordable markets in the country.
Record Share of Americans Expect Rents to Rise
According to Zumper’s National Rent Index which tracks the top 100 rental markets across the country, median one-bedroom rents posted an all-time high in February, the ninth time in the last 10 months of record-setting rent gains. (Because renters see a change in their rents when leases are renewed or when renters move to a new place, long-term renters haven’t yet seen the worst of asking rental prices yet.)
According to Fannie Mae’s monthly February survey, 69% of respondents believe rental prices will rise by +7.1% during 2022.
The Federal Reserve Bank of San Francisco wrote in an economic brief in February that “Persistent increases in asking rents will eventually push up the average rent of the entire (rental) stock of units on the market.”
Consumers’ perceptions on rent price increases are also seen as harbingers of home price increases for the year, according to Fannie Mae, as more consumers anticipate higher home prices and higher mortgage rates in 2022.
Are you ready to learn what your DISC personality style is? You know it’s critical that you understand what your natural personality style is. Once you have obtained this knowledge everything in your business and personal life will change for the better. Tim and Julie Harris are making it super simple for you to have this powerful info. Now, text the word YOU to 47372, and when you do you will instantly receive a special exclusive text link. Next, you will complete your own DISC personality test.. the results will be shared with you instantly once you complete the simple and fun test, no strings attached. Simply text the word YOU to 47372 and click the link.
P.S. (Limited time: no charge to take the complete test)
* 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
Thanks to The Real Deal and Bloomberg.