Rents are starting to surge in many parts of the country as the economy reopens and young people return rapidly to cities. On top of the influx of millennials and Gen Z renters coming back after staying with family or friends, people who can work from anywhere are still relocating to lower-cost cities, and the hot home sale market has caused some baby boomers to sell their family homes and rent again now that their kids are grown.
Nationwide, rent prices are up 7.5 percent so far this year, three times higher than normal, according to data from Apartments.com. Analysts expect rent prices to keep climbing for the foreseeable future, a major burden for renters and a warning sign that higher inflation could linger far longer than the White House and Federal Reserve keep predicting.
I think we’re going to see increases for the next 12 to 18 months, said Robert Pinnegar, president of the National Apartment Association. We’ve never had three generations in the rental housing space, at least not in the numbers we’re seeing now.
Demand for two particular types of rentals is especially high: single-family homes and apartments in smaller cities that have less inventory. Rents for single-family homes are growing at the fastest pace in 15 years, according to data firm CoreLogic. Parts of the country that used to be considered affordable are suddenly experiencing the kind of rent frenzy with bidding wars and surging prices that had previously been exclusive to mega cities like San Francisco and New York City.
Join South Coast as we discuss the opportunity in the apartment space with Hamilton Point Investments. Their newest offering, HPI Real Estate Fund IX will focus on acquiring multifamily properties below replacement cost in high growth secondary markets.
Tuesday, August 17th, 12-1 pm, register below. Lunch will be delivered to your home or office prior to this virtual lunch & learn.