Last year saw the biggest jumps in rental prices in a generation and it is currently outpacing 2021, according to Zumper’s National Rent Report…(Zumper)
- ONE BEDROOM: In March, rents hit a national median of $1,400 which represents a 12.2% year-over-year increase. This is the 11th time in the last 12 months that one-bedroom rent has hit an all-time high.
- TWO BEDROOM: In March, rents were up 13.8% year-over-year at $1,723. This is the 14th consecutive month that two-bedroom rent has hit an all-time high.
OUTPACING ’21: One-bedroom rents are up 2.5% in the first three months of 2022. That’s higher than the 1.9% rise experienced over the same period last year.
Miami continues to see the biggest year-over-year increases with a whopping 38.9% increase in March followed by Tulsa (+31.3%) and Knoxville (+31.0%).
- Not everyone was up year-over-year. Milwaukee reported the biggest decline with a 22% drop followed by Newark (-13.0%) and Cincinnati (-10.3%).
Jeff Andrews, journalist at Zumper, said that it is very possible that rent growth will outpace what we saw in 2021…
- “Vacancy rates entering the year were at all-time lows, and in a November survey conducted by Zumper, a staggering 81.6 percent of renters said they planned on moving in 2022. That equation—enormous demand and very little supply—equals high rent growth. Add in the fact that the home valuations are projected to keep growing rapidly—and thus price out more renters who would otherwise buy—and it’s not hard to envision a scenario where 2022 ends up outpacing 2021.”