Homebuying has cooled, and rentals are on the rise. As the rate of renters vs. homeowners increases, however, so does the price of rent.
A report from CNBC states that rent prices are increasing nationally, with the national median rent at $1530, according to HotPads. Hot Pads, owned by real estate giant Zillow, also notes that landlords are making fewer concessions and offering fewer special move-in deals for renters. Listings on HotPads offering concessions are down 30% from this time last year, with only 1 in 100 rental listings offering some type of special for new renters.
While rent changes differ from state to state and even city to city, it seems that overall U.S. rent prices are on the rise, and experts expect them to keep moving up.
Another report from Apartment List shows that the “national rent index jumped by 0.4 percent from April to May. Rents have increased by 0.9 percent over the past two months, a pace of growth that we haven’t seen since July 2017.” They note that the Las Vegas and Phoenix areas are two of the metropolitan areas with the fastest growing rent prices.
Some of these changes can be attributed to seasonal rent increases: many renters are on the hunt in the Spring and Summer months, leading to an increase in price as landlords try to upsell. This level of growth is still higher than the usual seasonal trends, however.
Memphis Remains Affordable Despite Rent Increases
Memphis has experienced significant growth in the last few years, which means that the city is not immune to these rent increases. In fact, some statistics project that Memphis rent between 2018 and 2019 has increased about 14% (13.6% for 1 bedroom, 14.1% for 2 bedrooms). Despite the rent increase, Memphis remains one of the most affordable cities in the country.
The affordability and growth in Memphis makes it a great city for both renters and investors. Whether you’re looking for a rental or looking to invest in rental property while Memphis grows, Reedy and Company Realtors, LLC, are experts in Memphis real estate. Contact Reedy & Co. today for more information!