Los Altos, CA – February 22, 2023 (Investorideas.com Newswire) Across the country, Americans are tightening their belts as more and more of their budgets are eaten up by the cost of groceries, energy, and other necessities. But in some places, sticker shock from everyday items like eggs or gas isn’t at the forefront of residents’ minds. According to the latest data drop from Dwellsy, rent has skyrocketed 30, 40, or 50 percent-or more!-in some markets since January a year ago.
“Regardless of location or property type, 2022 was definitely a landlord’s year,” says Jonas Bordo, CEO and cofounder of Dwellsy. “Single-family home rentals bore the brunt of record-breaking price increases. Median asking rent for a three-bedroom home rose $156, or 9.2 percent, from January 2022. In the same time period, asking rent for a one-bedroom apartment rose only $9, or 0.7 percent.”
Those numbers represent the nation overall. But some cities have undergone even more dramatic rent increases. And for the most part, they aren’t the pricey markets you’d expect. (Spoiler alert: You won’t find New York, San Francisco, or Los Angeles on this list! Instead, think places like outdoorsy southwest Georgia and a small city in Wisconsin best known for overalls and airshows.)
Dwellsy, the largest home rental listing platform in the country, regularly mines its 13+ million 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 down this data regionally across the U.S. so renters and landlords can see up-to-date trends in rental housing and current affordability in over 250 markets.
When analyzing rental trends, Bordo and his fellow data-crunchers focus on one-bedroom apartments because they are similar to two-bedroom apartments in terms of inventory, but are more price-accessible. Three-bedroom homes are also featured because they are by far the most common rental home type. For a more detailed look at Dwellsy’s rent price analysis methodology, see this article.
Here, Bordo shares which U.S. cities currently have the fastest-growing rent prices.
Top Ten Cities with Fastest-Growing Rent for Three-Bedroom Home Rentals
For the past few years, single-family home rentals (SFRs) have been highly sought-after. Some renters want more space than an apartment typically affords. Others may be waiting to buy a home until mortgage interest rates decrease. Whatever their reasons for wanting an SFR, renters in these ten cities are bearing the brunt of price increases that come with high demand.
“Albany, Georgia, claims to be a place ‘where history and nature flow,'” says Bordo. “Hopefully, SFR renters there have a decent cash flow as well, because Albany’s median asking rent has increased 42.8 percent since January 2022! Albany leads number-two contender Fort Smith, Arkansas/Oklahoma, by a fair margin, where rent has risen 36.6 percent.”
This table lists cities with the fastest growing rent for three-bedroom SFRs between January 2022 and January 2023.
Top Ten Cities with Fastest-Growing Rent for One-Bedroom Apartment Rentals
Oshkosh, Wisconsin, boasts a variety of events, attractions, shopping, dining, and more. But some residents might not have enough extra cash to enjoy activities that aren’t free. That’s because asking rent for a one-bedroom apartment has increased by 107.4 percent since last January. (Yes, the decimal is in the right place.) Oshkosh easily beats out Ellensburg, Washington, where rent has increased by “only” 59 percent.
“It’s true that some of the percentages on this list are mind-boggling,” says Bordo. “But I would be remiss if I didn’t point out that the apartment market in smaller cities can be highly volatile. The delivery of just a few new buildings-especially if they are more expensive than the existing competition-can cause a substantial impact on median asking rent.”
This table lists cities with the fastest growing rent for one-bedroom apartments between January 2022 and January 2023.
“A lot can change in a year, and the price increases in these twenty cities prove it,” concludes Bordo. “The good news is, most markets don’t tend to stay on ‘fastest-growing rent’ lists for long. Sooner or later, prices hit a ceiling and level out. If you’re moving to (or within) one of these cities, be aware that your rent is a lot higher than it would have been a year ago-but also know that you can probably expect more stable rents in the year ahead.”
About Jonas Bordo:
Jonas Bordo is the coauthor, along with Hannah Hildebolt, of the upcoming book Everything You Need to Know About Renting But Didn’t Know to Ask: All the Insider Dirt to Help You Get the Best Deal and Avoid Disaster. He 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.
About the Book:
Everything You Need to Know About Renting But Didn’t Know to Ask: All the Insider Dirt to Help You Get the Best Deal and Avoid Disaster (Matt Holt, August 2023, ISBN: 978-1-6377439-2-8, $21.95) is available for pre-order from major online booksellers.
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, and the University of Chicago. For more information, please visit our newsroom or find your next home at Dwellsy.com.
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