Rent Is Up a Staggering 28 Percent Since August 2021. Here's Why.
Los Altos, CA - September 21, 2022 (Investorideas.com Newswire) If it seems like rent is really (like, really) expensive right now, your instinct is correct. Rent in the United States is up 27.9 percent from last year. According to Dwellsy, the median asking rent in August 2021 was $1,650 per month. In August 2022, it had risen to $2,110 per month.
A $460 year-over-year increase in rent seems mind-blowing to most Americans. What is causing rent to skyrocket? The big-picture answer is that rental demand is at record highs, while inventory is lagging.
"If you want to get a bit further into the details, single-family home rentals are driving the overall market," says Jonas Bordo, CEO and cofounder of Dwellsy. "Nationwide, that rental type is highly sought-after because Americans are looking for bigger places to live. (We can thank the pandemic for that, at least in part: People want more space for home offices...and from each other.) Rent has accordingly risen more than 36 percent from August 2021. Believe it or not, there are some cities where the asking rent has grown by over 100 percent because the steep demand for single-family rental homes is pushing up overall rental costs."
Apartment rent, in contrast, is up only 4.7 percent-a rate that comes in below overall inflation levels.
Dwellsy, the largest home rental listing platform in the country, regularly mines its 13+ million verified residential rental listings for statistics and data. Because Dwellsy allows landlords to post listings free of charge, it has a pool of data that's more diverse-and more representative of the true rental landscape-than that of pay-to-play listing services. Each month, Dwellsy breaks this data down regionally across the U.S. so that renters and landlords can see up-to-date trends in rental housing and current affordability in their area.
See the table below for a breakdown of median asking rent by property type from August 2021 to August 2022:
"The good news is, there's a little relief for renters on the horizon," says Bordo. "Despite the massive year-over-year increase, August saw only a 0.5 percent (or $10) increase in median asking rent. That's significant because we would normally expect rent to increase by 1 percent as rents approach their seasonal peak in the early fall. I do expect this slowdown to continue."
About Jonas Bordo:
Jonas Bordo is the CEO and cofounder of Dwellsy, the free residential rental marketplace that makes it easy to find hard-to-find rentals. Prior to cofounding Dwellsy, Jonas was a senior executive at several leading real estate firms including Essex Property Trust and BentallGreenOak, and was with the Boston Consulting Group after graduating with his MBA from the University of Chicago Booth School of Business. Jonas has had the good fortune to build, rebuild, and lead amazing teams across the multifamily and commercial real estate operational and strategic spectrum; orchestrate the sale of several businesses; develop a strategic plan for one of the world's leading symphony orchestras; implement a Toyota production system; and create more than 40 brands. He is husband to Rosalind and father to Bailey, Zach, and Thea; an avid hiker; a lifelong learner; and a maker of things, sometimes out of wood.
Dwellsy is the renter's marketplace: a comprehensive residential home rentals marketplace based on the radical concept that true, organic search in a free ecosystem creates more value than the pay-to-play model embraced by all of the current rental listing services. Dwellsy has more than 13 million residential rental listings-more than any legacy classifieds site-as well as the most diverse set of listings, including single family rentals, condos, and apartments. Dwellsy's entirely different approach to residential rental listings focuses on presenting houses and apartments based on features renters need and want, not based on how much landlords pay to show their listings. Dwellsy investors include Frontier Ventures, Ulu Ventures, Blackhorn Ventures, Heroic Ventures, Anne Wojcicki, and the University of Chicago. For more information, please visit our newsroom or find your next home at Dwellsy.com.
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