Rent prices increased marginally in November, up 1.23% month-over-month to $2,007 from $1,983 in October, following two straight months of falls.
According to Rent.com data, the reversal was caused by rising costs for two- and three-bedroom apartments as well as a rise in pricing for the most costly units.
According to Freddie Mac, a rent increase affected nearly 60% of the roughly 44 million American households that rent, while only 38% reported an increase in income.
“The surge in rents that took place over the last 12 months has created even greater housing uncertainty for the most vulnerable renters,” said Kevin Palmer, head of Freddie Mac Multifamily. “Our survey shows that the national housing affordability crisis is worsening and that inflation is a key driver.”
Of those who saw a rent increase, 15% said it was a hike of more than 10%.
What’s the average rent in 2022?
Although there was a modest increase in rent in November, the average rent in 2022 was $1,326 per month.
This translates to rent paid by Americans to landlords as $58.34 billion every month, or over $700 billion for the entire year.
Landlords aren’t the only people who can earn money in the housing market. Here’s how to invest as little as $100 in a rental property to earn passive income and build long-term wealth.
At the state level, New York saw a 10% increase in prices, followed by Massachusetts and Iowa, which saw rents grow by less than 4%.
However, 60% of U.S. areas have seen a decrease in median rent month-over-month, with Rhode Island leading the way with a nearly 7% decrease in rents from October to November.
Also read: Housing Is Still Hot, But It's Cool Enough To Touch, According To New Redfin Data
According to Redfin Corp's Housing Market Predictions for 2023, the declines should continue into 2023 as supply rises, especially for single-family rental properties.
In order to attract new tenants when demand for rental apartments declines, larger landlords may start making additional allowances for tenants, such as providing free parking or one month's rent.
To read about the latest developments in the industry, check out Benzinga's real estate home page
More on Real Estate from Benzinga
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
