Record increases in both low- and high-price rental properties contributed to the overall gain. Low-price properties, defined as those charging less than 75% of the region’s median rent, saw rents jump 11.2% in December from a year ago. High-price properties, or those with rents greater than 125% of a region’s median, saw an increase of 11.9%. More people are in the market for rentals, as consumers who would otherwise be looking to buy a home either get priced out because of super-high asking prices, or simply can’t find anything they like with the ultra-low inventory of homes for sale. Meanwhile, low unemployment, higher wages, and young adults forming new households are also boosting demand, said Jay Parsons, head of economics at real estate technology company RealPage, in a commentary earlier this month. With occupancy rates at record highs, rentals are likely to keep getting more expensive and more difficult to find, too. The period of time when a rental unit is vacant has virtually disappeared in the current market. “People move out, others move in,” wrote Parsons. “There’s usually some time in between leases where the unit is marketed as available. That’s not really happening today. When renters give notice to move out of a unit, another prospective renter swoops in to lease the unit before the current resident even moves out.” Have a question, comment, or story to share? You can reach Medora at medoralee@thebalance.com.
