We’ve talked about the numbers and year-over-year changes, but let’s deep dive into the factors that are contributing to rent increases and decreases.<\/p>\n
As the cost of living continues to soar, renters are asking themselves, what’s driving rent increases? Rent. analyzed the data and trends to understand what apartment characteristics are propelling rent growth and what renters can expect as we head into a new year.<\/p>\n
The cost of rent continues to fluctuate or even rise in several metro areas across the country. Despite national declines in September and October, rent levels increased again by 1.23 percent in November.<\/p>\n
Renters may not be able to control the price of rent, but they can be informed about what’s causing this tumultuous rent growth and find ways to adjust accordingly. We’ll share an overview of rent trends we’ve seen and provide some insight as to why rent prices were trending down and then back up again.<\/p>\n
Going back to economics 101, prices will increase or decrease based on supply and demand. While other factors contribute, this is one of the main reasons for price drops and spikes. Some fluctuations in the price of rent are normal and part of a healthy rental market, but it’s been an unprecedented year.<\/p>\n
For the last two months, rent had been steadily declining but saw an uptick in November. While the median rent has increased, it is still lower than it was in August at its peak. As a renter, it can be stressful to see those prices trend up and to the right.<\/p>\n
Right now, the national median rent price is $2,007. In the fall, the median rent price dipped below two thousand dollars a month but increased again by 1.23 percent in November to where it is now. The cost of rent is 7.45 percent higher this year compared to last year, as well. While prices are slightly up in general, take note that yearly increases are still in the single digits.<\/p>\n
We’ve talked about the numbers and year-over-year changes, but let’s deep dive into the factors that are contributing to rent increases and decreases.<\/p>\n