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Rents to Keep Rising in 2017

October 11, 2016 12:45 am


Rents are expected to increase 1.7 percent in 2017, according to the latest Zillow® Rent Forecast, with the highest increases anticipated in markets in the West—Seattle, Portland and Denver. The projected increase, though slowing, could give reason for renters to make the transition to homeownership.

“We have more renters today than in the past, and most newly formed households are renter households,” says Dr. Svenja Gudell, chief economist at Zillow. “This taken together with a lack of new rental construction at less expensive price points has been a recipe for rising rents."

Zillow’s forecast predicts rents will rise most rapidly in:

1. Seattle, Wash. – 7.2 percent
Median Rent: $2,067

2. Portland, Ore. – 6.0 percent
Median Rent: $1,777

3. Denver, Colo. – 5.9 percent
Median Rent: $2,013

4. Cincinnati, Ohio – 5.2 percent
Median Rent: $1, 239

5. San Francisco, Calif. – 4.9 percent
Median Rent: $3,406

6. Los Angeles, Calif. – 4.8 percent
Median Rent: $2,593

7. Sacramento and San Diego, Calif. – 4.7 percent
Median Rent (Sacramento): $1,681
Median Rent (San Diego): $2,427

8. Phoenix, Ariz. – 4.6 percent
Median Rent: $1,297

9. San Jose, Calif. – 4.5 percent
Median Rent: $3,517

10. Boston, Mass. – 3.9 percent
Median Rent: $2,310

“There is good news for renters on the horizon, though,” Gudell adds. “Current renters in these markets can expect rents to slow down a bit over the next year. Instead of the 10 percent rental appreciation we’ve been seeing in some places, expect growth more along the lines of 4 to 7 percent. This is still high, but will hopefully give renters some relief.”

Source: Zillow®
 

Published with permission from RISMedia.