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Top five US cities where rent is rising the most nationwide
Although many renters across the country have enjoyed a reprieve after years of steep hikes some metropolitan housing markets are continuing to trend upwards.
Several major cities have increased year-on-year rent demands on tenants once again, according to the latest data.
The sharpest annual increases were focused in the Northeast and Midwest, according to the latest rent report from Realtor.com.
Renters in Chicago suffered the largest hike as of March, up 4.3 per cent on the previous year.
The move brings the median monthly rent in Windy City up to $1,846.
Renters in Chicago suffered the largest hike as of March, up 4.3 per cent on the previous year
Tenants in New York City felt the pinch as their median monthly rent rose to $2,876
Tenants in New York City also felt the pinch as their median monthly rent rose to $2,876, a 3.8 percent increase from last March.
Also in the Northeast, Boston experienced a 3.3 percent rise bringing monthly rents up to a median of $3,023.
Rents are under upwards pressure in the Northeast region due to a lack of land available for building new family homes, causing a restriction in supply and therefore increased demand, according to Jiayi Xu, an economist for Realtor.com.
In addition 'the high housing prices in these expensive markets, plus elevated mortgage rates, may force people to stay in rental markets longer,' Xu explained.
Indeed the average income to buy a home across America has soared to $116,000, a recent report revealed.
As families are forced to delay buying a home the more time they remain in the rental market the more demand increases for such rentals, Xu added.
In the Midwest Kansas City rents rose 3.4 percent and Indianapolis rose 3.3 percent year-on-year, bringing median rents up to $1,340 and $1,297 respectively.
'For Kansas City and Indianapolis, in addition to affordability, both of them have strong labor markets, with unemployment rates of 3.6 percent and 3.7 percent [respectively] in February,' Xu said.
A tight labor market with low unemployment can fuel demand for rentals in a city, causing landlords to raise prices she explained.
Despite these localized hikes rents across the nation have continued to decline for eight months, according to Realtor.com.
In the Midwest Kansas City rents rose 3.4 percent bringing median rents up to $1,340
Boston experienced a 3.3 percent rise bringing monthly rents up to a median of $3,023
Rents in Indianapolis rose 3.3 percent year-on-year bringing the median monthly cost to $1,297
Median rent declined in all sized properties across the US, and by an average of 0.3 percent in the last year for properties with two bedrooms or less in the top 50 metro areas.
In the South rents dropped by an average of 1.5 percent since the same time last year.
The rising costs of housing have been a major pull on inflation that has plagued the US economy since the end of pandemic restrictions.
'Stabilizing market rents could make it difficult to see further improvement in the overall rate of inflation, complicating the Fed’s policy decision and underscoring the need for additional housing construction to alleviate the supply shortage' Xu and Danielle Hale wrote in their report.