Anyone shopping for a home knows that asking prices are soaring. But the situation isn’t much better for renters, as a new Realtor.com report shows.
The median monthly U.S. rental price increased 11.5% year over year in August, to $1,633. That makes August 2021 the first month on record to see double-digit rent growth.
In 10 cities, rents have exploded. In fact, some of these locations have seen rents leap by 25% or more.
The metropolitan areas where median rents are rising fastest are:
- Tampa-St. Petersburg-Clearwater, Florida: Up 30.6% year over year, to $1,760 per month
- Riverside-San Bernardino-Ontario, California: Up 28.6%, to $2,234
- Miami-Fort Lauderdale-West Palm Beach, Florida: Up 27%, to $2,432
- Phoenix-Mesa-Scottsdale, Arizona: Up 25.5%, to $1,688
- Las Vegas-Henderson-Paradise, Nevada: Up 23.4%, to $1,515
- San Diego-Carlsbad, California: Up 23.4%, to $2,695
- Memphis, Tennessee-Mississippi-Arkansas: Up 21.8%, to $1,200
- Austin-Round Rock, Texas: Up 21.7%, to $1,618
- Orlando-Kissimmee-Sanford, Florida: Up 21.4%, to $1,620
- Atlanta-Sandy Springs-Roswell, Georgia: Up 21.2%, to $1,697
In a press release, Danielle Hale, Realtor.com chief economist, says the increased rents are a result of pent-up demand that has been unleashed as people return to working in offices, city life revives and young people begin to look for places of their own.
“Put simply, August trends suggest rents are making up for lost time. Rents remained low during some of the worst months of the pandemic, growing at a sub-2% pace from September 2020 to March 2021, which is also when for-sale home prices were growing by double-digits.”
Hale says rents may continue to grow for at least the next few months.
Rising rental prices may motivate some renters to finally jump into homeownership. For many, that can be a wise decision.
But you shouldn’t let fear of rising rents force you into making any hasty decisions. Homeownership can be rewarding — financially and emotionally — but it also comes with plenty of drawbacks.
For more, check out “10 Reasons Renting Is Better Than Buying a Home.”
However, if homeownership seems right for you, stop by Money Talks News’ Solutions Center and search for a great mortgage rate.