Zillow : Rent Increases Slow as New Apartment Buildings Open By Jordyn Lee on 19 Nov 2015
November 20, 2015 at 01:01 am
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New apartment buildings are finally opening, which is helping slow rent appreciation across the U.S. According to the Zillow October Real Estate Market Reports, national rents grew 4.5 percent annually, down from 5.3 percent in September.
Due in part to a lack of inventory, finding an affordable place to rent is a struggle for many residents across the country. Rents are still rising quickly, but thanks to new apartment buildings opening, they are growing at a slower pace, even in some of the hottest rental markets.
The San Francisco metro is the fastest-growing rental market, and while rents are still appreciating quickly, they've seen some slow down over the past year. Rents in San Francisco are up 15.2 percent from last year, but they were growing as fast as 19 percent in June and July.
Even though rental appreciation is slowing, renting is still unaffordable for many residents across the U.S. 'It will take a lot more supply, and a lot more renters-turned-homeowners, to fully reverse this trend,' said Zillow Chief Economist Svenja Gudell.
Here are the U.S. metros with the biggest and smallest median rent change over the past year.
Biggest Year-Over-Year Median Rent Change
San Francisco - 15.2%
Portland - 11.2%
Denver - 11.1%
San Jose - 11.0%
Seattle - 7.4%
Smallest Year-Over-Year Median Rent Change
Cleveland - 0.3%
Chicago - 1.4%
Washington, DC - 1.7%
Indianapolis, Baltimore, and Philadelphia - 2.1%
Minneapolis-St. Paul - 2.2%
For more information, read the report on Zillow Research.
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, partners, and agents, and buying, selling, financing, and renting experiences. The Companyâs affiliates, subsidiaries and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including Spruce, Mortech, New Home Feed, ShowingTime+ and Follow Up Boss. Its services are primarily designed for buyers, sellers, partners, renters, and borrowers. For customers who are focused on buying new construction homes, it connects them with its home builder partners. Its rentals marketplace assists its partners with listings, advertising, leasing, and property management services.