US Rental Market Increases Dramatically

Rents Continue to Rise in Many US Markets

Its a hot rental market out there right now and according to the Wall Street Journal, rents climbed 3.6% during the second quarter compared to last year. Since 2012, rents have increased nearly 4% annually and not surprisingly places like San Francisco and even Denver, rental costs rose 7.2% and 6.8% to an average of $2316 per month for rent.

Inadequate housing supplies are pushing up these rental costs. This is all stemming, in my opinion, from the housing crash when construction companies and developers simply were not keeping up with the market because there was no one to buy them. Now, we're seeing that supply drained faster because the homes that are on the market are selling fast and selling to investors.

Developers and builders are scrambling to keep that. According to the REIS,  real estate research firm, over 230,000 new units will be completed this year, doubling normal levels. As new homes hit the market, the rent growth will begin to decelerate but that's simply not happening yet.

 For the Columbus Ohio area, the average rent property for a one bedroom is currently $750 and a two bedroom is closer to $900. These rents have been inching up over the last couple of years. The average for all types of homes used to be around $775 back in 2009 and now that averages closer to $915 as of May, 2015.

 The highest price rents are found in Italian Village, German Villiage, and Victorian Village, where all rents are over the $1200 mark.

 Home prices have also increased with the median list price at $164,900 and the median sale price to list price is currently a 96.9%. Over the last 90 days over 3800 homes have sold throughout the Columbus Metro area with a median sales price of $159,900.

 Investors and landlords are snatching up a lot of these homes which nationally will drive up the price of rent because  buyers simply cannot compete with cash offers from investors. For more information on the Columbus real estate market visit my website. Tell me below what your rental market looks like.