Incomes Stagnant as Apartment Rates Continue to Climb

Apartment Complex

And the beat(ing) goes on. As household incomes remain at a stand still, apartment rental rates continue to rise across the country. According to a recent article in the Wall Street Journal, apartment landlords continue to put the squeeze on renters, raising rates in the second quarter of 2014 by an average of 0.8%. After 18 consecutive quarters of rent increases, the average monthly rent for an apartment now sits at $1,099 per month according to data from real estate research firm Reis.

Overall, effective rents were up in all 79 U.S. metro areas tracked by Reis led by San Francisco, San Jose, and Seattle which posted increases of over 6% over the past year. Also finding their way on the list were a few cities not typically known for fast rent growth including Charleston, S.C. and Nashville which posted increases of 5.9% and 4.4%, respectively. Economists believe the growing demand for rental housing reflects both changing preferences among a younger generation of renters as well as “tight mortgage-lending standards.”

Despite a long run of increases, there are indicators that show supply may be catching up with demand which could mean climbing rates will slow. As new units are built and vacancies rise, experts believe the squeeze will ease up a bit. Only time will tell.

Cincinnati Area Apartments for Rent

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