Rental Rates Rise Over 3% Since Last Quarter
Rental Rates Growth Continues to Outpace Inflation
The Real Property Management system and RentRange, the nation’s leading provider of Rental Market Intelligence™, released their quarterly rental statistics, which show rental rates are rising more rapidly than the U.S. inflation rates. During the second quarter of 2015, the companies found that the average monthly rent for single-family homes now exceeds $1,320, up 3.3 percent since just last quarter and representing a 6.1 percent year-over-year increase. In comparison, the consumer price index grew by .2%. The rental market data was limited to three-bedroom single-family homes in the U.S. Rental rates were up in all 10 regions analyzed. The Pacific and Northeast regions saw double digit increases in rental rates, with 11.8 percent and 11 percent year-over-year increases, respectively. The Mid-Atlantic and South-Atlantic regions showed the lowest increases with 3.1 percent and 5.2 percent increases, though the Mid-Atlantic has rental rates well above the national average, at $1,642.
Rental Rates and Year-over-Year Increases of 10 U.S. Regions through the Second Quarter 2015
|REGION||Median 3 BR rent ($)||Y-o-Y Change in 3BR rent|
Rent increases have been accompanied by reductions in vacancy rates – the percentage of homes considered unoccupied across the U.S. The national rate fell to 5.46 percent through June, down .12 percent from a year ago. The Midwest region had the highest vacancy rate at 6.88 percent, while Texas was the lowest at 3.43 percent. The report also analyzed rental saturation rate across the country, showing that it continues to climb and is now at 25.4 percent, compared to 23.9 percent last year. Rental saturation is the estimated percentage of rented single-family homes as a share of all single-family homes. As leaders in the rental housing industry, Real Property Management and RentRange have an ongoing strategic business relationship. Real Property Management relies on RentRange’s proprietary rental housing data to provide its landlord customers with accurate, current information about local rental properties and rental markets.