Skyrocketing rents continue to plague renters, and the problem is going to only get worse all over the country. “Overall, housing dynamics are currently changing,” says Mark Fleming, CoreLogic’s chief economist. “Rental demand is rising while supply is dwindling as a result of the declining share of distressed assets relative to all homes on the market. Due to this trend, rent prices will continue to climb.”
Rising rents are not just affecting coastal cities such as New York City, San Francisco and Miami, which have long had the highest rents in the nation. Higher rents also are increasingly hitting Middle America.
In the second quarter of this year, several cities in the central U.S. placed in the top 10 regions for highest rent growth, including Nashville, Tenn.; Raleigh, N.C.; Louisville, Ky.; Columbus, Ohio; and St. Louis, according to a report by Reis, a real estate research firm.
“Although average rents in these smaller cities are still lower than in big cities, the rapid increases have been met with sticker shock by residents, especially those with lower incomes,” The Wall Street Journal reports. Economists say that landlords are able to continue raising rents due to strong demand and local job growth.
About half of renters spend more than 30 percent of their income on rent, up from 18 percent a decade ago, according to newly released research by Harvard’s Joint Center for Housing Studies. Twenty-seven percent of renters are paying more than half of their income on rent.
Shaun Donovan, former Secretary of the U.S. Department of Housing and Urban Development, said the nation is in the “worst rental affordability crisis this country has ever known.”
A shortfall in affordable units is particularly troublesome as low-income renters struggle to find a place.
As with all things real estate, we at Landmark Group can help. We have rental properties available at various price levels. And, if you are an investor, we can help you buy or sell rental property.
David J. Paladino CPM, MSRED
Landmark Group 402-672-6566
2702 Douglas St. Omaha NE 68131