Housing and Apartment Rent in the United States of America

Housing and Apartment Rent in the United States of America

According to the Census Bureau, nearly 20 million rental properties are available in the United States. These properties are owned by both individuals and for-profit companies. Individual investors own nearly 14 million of these units, while for-profit businesses own almost 21.7 million. Nonprofit organizations, however, own a much smaller percentage of rental properties.

New York City is the most expensive rental market in the United States

While the rise in mortgage rates is making homeownership less appealing, the lack of affordable housing options is driving many would-be buyers to rent. The cost of renting in New York City has jumped by 33 percent in the past year, according to the Apartment List’s National Rent Report. The shortage of affordable housing in the city is largely due to the severe lack of supply. While the number of jobs in the metropolitan area has grown substantially since 2001, production of new housing units has stagnated in the decade since the Great Recession.

Rising rent prices are a result of the housing market’s soaring demand and low supply. The fear of a recession is also causing many renters to make lifestyle sacrifices. But rent prices are likely to moderate slightly as more people find other ways to spend their money.

San Francisco rents are slowly increasing to pre-pandemic levels

Rent growth in San Francisco is slowly regaining momentum from a low in June, when the cholera outbreak triggered a drop in prices. While the increase was tempered since then, the overall increase for 2022 is still ahead of pre-pandemic levels. The median rent for a one-bedroom apartment is now $3,100, the highest level since July 2020.

Unlike other parts of the country, the San Francisco rental market has been the slowest to rebound. The region had a large number of vacancies early on, which fueled the big fall in rents. San Francisco is still the only large metro area that has rental prices below pre-pandemic levels. The South Bay is right behind it, with rents rising at the second-slowest pace.

Although San Francisco rents remain 2 percent below pre-pandemic levels, they are expected to catch up in the next couple of months. The only other metro areas with lower median rents are Seattle, Washington, and Pittsburgh. In fact, the lagging prices are largely due to the fact that the Bay Area has an exceptionally remote-friendly workforce. As a result, many tech companies in the area offer flexible work options.

Rent growth in coastal metros

In the last month, rents in most coastal metros have increased. The best performers are San Jose and Raleigh. The second-best performers were New York and San Francisco, with increases of between 1.8 and 3.0 percent YoY. Those markets are experiencing a resurgence in the number of residents moving back to these areas.

In August, rent growth in the multifamily market was positive nationwide. The average asking rent in the top 30 metros increased by more than 10 percent year-over-year. Only two metros – Midland-Odessa and Queens – posted negative YoY rent growth. The other 25 metros were largely flat or had rent growth of at least 1%.

While asking rents have been rising faster in many coastal metros than in other areas, the pace of growth is slower than it was last year. In San Francisco, rents rose by nearly two percent over the last year, while rents in Minneapolis and Des Moines rose by over four percent. In San Jose, the rents are up more than three percent over the past year.

Landlords aren’t a homogeneous group

Despite the stereotype, landlords are not a homogeneous group in the United States. According to the Census Bureau, nearly 20 million rental properties are owned by private investors. While most landlords have no qualms about renting to someone who doesn’t meet their standards of decency, cleanliness, and neighborliness, there are still some landlords who enforce a moral code. For example, some landlords don’t want to rent to either heterosexual or homosexual couples.

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