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Rental rates in March for single-family homes in the U.S. reached their highest since September 2006, when the housing market crashed at the outset of the Great Recession, data firm CoreLogic reported in a study released 25 May.
Average rents climbed 4.3 percent year on year in March, the company said.
Rates are steadily rising as families priced out of homeownership seek to satisfy their dreams of detached homes and more space by renting, particularly in suburbs.
Almost 70 percent of consumers say that record home prices have driven them into the rental market, a recent CoreLogic survey found.
Rents jumped highest in Phoenix and Tucson, where rents rose 11.4 and 10.4 percent, respectively, with Atlanta; Charlotte, NC; and Las Vegas close behind.
Rents rose most for the most expensive homes, CoreLogic found.
Rental rates fell almost 8 percent in Boston; rents also dropped in Chicago and St. Louis.
Like soaring home prices, spiking rental rates are pricing some potential tenants back into their apartments.
More than a third of consumers CoreLogic surveyed said rentals in their neighborhoods were “not very” or “not at all” affordable.
TREND FORECAST: While rental rates fell in major cities such as Boston, and Chicago, they will begin to rise as more young people move back into cities that were locked down during the height of the COVID War. The commercial real estate sector, however, will remain weak as more people work from home a few days a week… a trend that did not exist at significant levels before 2020.
And, as technology advances and virtual reality becomes more of a reality, the work-at-home trend that was just born will continue to grow.