The price of fuel, groceries, and virtually everything else is rising rapidly in our current economy. According to the latest Realtor.com® Monthly Rental Report, you can continue to add rental prices to this list as well. According to the latest April 2022 report, the U.S. median rental price hit a new high of $1,827/month. This marks the 14th straight month of record rental prices.
Inventory squeeze + higher demand = rising rents
According to the recent Avail Quarterly Landlord and Renter Survey, higher rents are increasingly cutting into households’ budgets for regular expenses and savings. Of course, the domino effect from decreased savings for these renters will result in likely delayed home ownership. As if the competition for rentals were not steep enough, we are also seeing more would-be home buyers being priced out of the housing market and re-entering the rental market. For perspective, below is a chart of the recent rental price trends:
April 2022 National Rental Metrics
| UNIT SIZE | MEDIAN RENT | CHANGE OVER APRIL 2021 | CHANGE OVER APRIL 2020 |
| Overall | $1,827 | 16.7% | 21.0% |
| Studio | $1,500 | 17.2% | 15.2% |
| 1-bed | $1,679 | 15.7% | 19.9% |
| 2-bed | $2,062 | 16.0% | 23.8% |
Summary
Since the beginning of the pandemic, we have seen shifting migration patterns. Interestingly, the five largest markets that posted April’s biggest overall rental price gains year-over-year were in the Sun Belt as follows:
- Miami, FL: +51.6%
- Orlando, FL: +32.9%
- Tampa, FL: +27.8%
- San Diego, CA: +25.6%
- Las Vegas, NV: +24.8%
If you are a renter struggling with higher costs, you can access free financial counseling through the Renter Advantage Program by clicking here. This program is a collaboration between realtor.com®’s Avail, the National Foundation for Credit Counseling, the Housing Partnership Network, and Wells Fargo.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
