10 U.S. Cities With The Steepest Rent Increases (2010)

By
Mortgage and Lending with Pacor Mortgage Corp

Rent is risingHome sales data is easing so far in this calendar year. Home resales and new construction have dropped to multi-month lows and, in many cities, home supplies are rising. One housing sector that's not slowing, however, is rentals.

The rental market is booming.

As reported by the Wall Street Journal, the average apartment vacancy rate is 6.6% nationwide, down from 8.0% last year. In addition, the number of occupied apartments rose by more during Q4 2010 than during any comparable period of the last 10 years.

It's a major reason why rents are up 2.3%.

Some areas, however, fared worse than others. This study of rent increases as published on MSNBC, for example, lists the 10 U.S. cities in which rents increased the most last year. And they may not be the cities you'd expect.

In order:

  1. Greenville, SC (+11.2%; $669 average monthly rent)
  2. Chattanooga, TN (+10.4%; $726 average monthly rent)
  3. Savannah, GA (+8.4%; $866 average monthly rent)
  4. Portland, OR (+8.1%; $875 average monthly rent)
  5. San Jose, CA (+8.0%; $1,716 average monthly rent)
  6. Nashville, TN (+8.0%; $786 average monthly rent)
  7. Tacoma, WA (+8.0%; $900 average monthly rent)
  8. Denver, CO (+7.5%; $873 average monthly rent)
  9. Washington, DC (+7.4%; $1,473 average monthly rent)
  10. Raleigh, NC (+7.4%; $785 average monthly rent)

Big cities New York (#18), San Francisco (#19), and Chicago (#24) showed modest gains, by comparison.

Not everyone across Illinois wants to be a homeowner, but renters are facing a squeeze. With mortgage rates historically low and home values slow to recover, in many cities, the cost-benefit analysis is shifting toward buying.

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Topic:
Mortgage / Finance
Location:
Illinois Cook County Oak Lawn
Groups:
Chicago Area Real Estate BUZZ!
Chicago-Northern Illinois Real Estate
Chicagoland and Northern Illinois Real Estate
NAPERVILLE ILLINOIS REALTORS
Tags:
homeownership
rent
costbenefit

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Rainer
245,974
Shannon Coe
Keller Williams - Rocklin, CA
916-597-3818, Lincoln, Rocklin, Loomis, Roseville

I know our local rents took a big hit in the last 4 years..I hope Northern California rents go up soon.

I own some rentals...:)

Mar 23, 2011 04:28 AM #1
Rainmaker
601,537
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Kevin - You're right, I'm surprised Los Angeles & Ventura counties are not on there because I know for a fact that our rents are rising, our vacancies are down and our average rentals for a modest home/apartment can run $1,500 - $2,000 a month.

Mar 23, 2011 04:32 AM #2
Rainer
26,244
Synthia Noble
RE/Max "10" New Lenox - Crete, IL

I have noticed in south chicago and south suburbs rents rising - regardless of the area.  Your monthly expenses are often cheaper when you buy a house than trying to rent one!  crazy.  I expect investors are going to be active for a while in this market.  I just talked a friend into buying one of my listings - $25,000 cash, needs about $5000 worth of work.  she will be able to get $1,200/month in rent - talk about positive cash flow!

people who don't mind being landlords and take advantage of this crazy market are going to be very well off in a few years

Mar 27, 2011 04:07 AM #3
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Rainmaker
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Kevin Lanham

Chicagoland FHA Expert
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