Home sales in the US have slowed dramatically over the past year - and in some markets, like tony Manhattan, they have virtually ground to a halt - as high prices and a shortage of affordable inventory have squeezed cash-strapped young buyers.
But unfortunately for the average renter (a group that includes the bulk of millennials who don't still live with their parents), this housing market weakness hasn't translated to lower rents. In fact, in March, the average national rent increased by 3.2% YoY to $1,430 (up $44) to a fresh all-time high. What's worse, the increases were spread throughout the country, with 92% of the 253 largest cities in the US registering an increase in the average rent paid, while 6% of cities registered no change, and rents dropped in just 2% of cities, according to data from the Yardi Matrix published by RentCafe.com.
On a monthly basis, rents climbed 0.3% (or $4), which was in line with last year's rate for March. And unfortunately for all of those cash-strapped creatives living in Brooklyn, the 20 largest rental markets in the US continued to see robust price appreciation, with the average rent in the borough climbing to $2,860. Manhattan's rental market remained the most expensive in the country, with the average rent a staggering $4,141.
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5 comments:
"American Rents Climb To Record Highs Despite Slump In Home Sales"
This headline makes no sense. Would a slump in home sales bring rental prices down, or keep them flat? Prices are market-driven in the rental industry.
5:41 PM Market Driven? Never. Its always been how much can I gouge the poor renter and who will take my slummy house because they have no other choice. Is that what you mean by "market driven". They all pretty much collude on price and it is either pay it or be homeless. Then you are trapped as they over increase your rent the next year at lease signing. We have several homes on our block, and we don't know exactly how many live in them, but it is multiple families. Force into these living arrangements because they have no other choice.
Market Drive under the Websters Dictionary = greed.
USA has gone to HELL !!
No more, will anyone Pay off a home or even get one !!!!
Mortgaged for Life !!! Just like Rent / No end !!!!
Better make good $$$$ or ur Done !!!!
Market price is determined by what people will pay, based on availability, quality, location and need. Salisbury's market before no more dorm space was created by SU in the 1980s was relatively tiny. Once dorms were saturated, the community was looked upon as a Golden Goose. Rents went up three and fourfold, sometimes even more. Outside money could bear the cost of housing. A four bedroom house that rented for $800 per month in 2005, now rents for about $800 per month for each of the four student, utilities not included.
Landlords will charge as much as they find that people will pay.
Greed controls the market
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