The average rental property rent in the United States showed increases in 2017 as it has for the last several years. However, there are signs that rental prices are beginning to stabilize; some cities even saw overall rental prices decrease. Below is a brief overview of price trends, the fastest rental rate increases by city, cities where cost is decreasing, and the most affordable rental cities in the country.
Rental property rent price trends
The average cost of rent in major cities in the United States increased to $1,314 in April, 2017. However, it only grew at a rate of 0.2% from March and overall by 2% when compared to this time last year. By comparison, April of 2016 saw a year over year increase of 6% when compared to 2015. This may reveal a trend toward a slowing rise in rental rates as the market is stabilizing to meet demand and the prices renters can bear. This stabilization trend varies by city and local market factors.
Cities with the fastest increasing rental rates
The most expensive rental markets are located chiefly on the West Coast where year over year increases in rent prices were quite notable. California cities such as Stockton (11.2% increase), Lancaster (10.9% increase), Santa Rosa (9.4% increase) and Modesto (9.4% increase) saw high rates of rental property price growth. Colorado Springs, CO (10.0% increase), Tacoma, WA (9.5% increase), Buffalo, NY (9.3% increase), and Reno, NV (8.7% increase) also saw high yearly property rental growth rates.
Cities where rent is decreasing
Interestingly, California also saw rental property price decreases in some of its more expensive locations on a year to year basis. San Francisco (a decrease of 3.6%), Sunnyvale (a decrease of 1.9%), and Oakland (a decrease of 1.4%) all saw rent prices decrease. Other notable decreases were Broken Arrow, OK (a decrease of 2.8%), Manhattan (a decrease of 2.5%), Oklahoma City, OH (a decrease of 2.5%), and Corpus Christi, TX (a decrease of 2.1%) to name a few.
Least expensive rental markets
For renters looking for the most affordable cities, the following locations averaged rental property prices below $800 per month.
Wichita, KS $630
Toledo, OH $664
Tulsa, OK $667
Killeen, TX $701
Brownsville, TX $701
Fort Wayne, IN $702
Independence, MO $711
Oklahoma City, OK $716
Dayton, OH $726
Memphis, TN $730
General trends show the most affordable property mainly located in the South and Midwestern areas of the country.
Rent trends summarized
When viewing rental property prices a few key points stand out.
#1. While rent prices have increased in 81 percent of the country’s largest cities this growth has slowed when compared to recent years and points to a stabilizing market.
#2. Some of the most expensive markets (such as Manhattan) have shown a decrease in price despite overall high cost of living.
#3. Location greatly affects price with the most expensive property remaining in coastal areas while the Midwest and South show lower prices.
To read more figures on rent pricing and location costs consult this report for more information.
Son-Rise Property Management has been serving the property management needs of Bellingham and Whatcom County since 1996. Contact us today to see how we can help you find a rental property for your family or manage your rental properties.