Friday, May 27, 2011

Bay Area Average Rent goes up

Real estate agents predict rents will continue rising. The rents in San Jose increase almost 7% in 2010.

There are still many factors discouraging even the most savvy homebuyers from purchasing a home, but a new class of renters is expected to bring a bright spot to the troubled U.S. real estate market. Prices for rental apartments are expected to rise nationally – by approximately 4.5% in 2011 and up to another 3% in 2012, according to Rent.com.

During the housing boom between 2001 and 2005, prices for rentals fell by nearly 10% as easy credit offered by banks lured many newcomers to homeownership. Since the bust of the housing market, rents have more than made up those declines as more people now question the financial merits of homeownership or simply can't get approved for a mortgage. From 2006 to 2009, rental prices on average increased by more than 15%, according to Moody's Analytics economist Andreas Carbacho-Burgos. Nationwide, the average rent today is $1,360 a month.

More details at Winners of the rental economy

2 comments:

Manhattan Beach Agent said...

National rents are rising, but less than 3% on average across the country. Like most aspects of real estate, however, rental growth is a local phenomenon. In my market (Manhattan Beach, CA), for instance, median rents are down ~18% year-over-year.

Matt Heisler said...

Rents are up on the East Coast too - 3% might not be a big number, but it has a larger affect on real estate prices. Worked that way on the way down, too.