Only one of the ten fastest-rising rental markets is elsewhere
The US median monthly rent was up 3.2% in the second quarter of 2019 compared to a year earlier, giving those who want to buy a new incentive to act – if they can do so soon.
The increased median rent means a monthly payment of $1,545 and renters in the Sun Belt are paying out the most, with markets accounting for 9 of the 10 fastest-rising markets.
The pace of growth increased from 3.1% in the first quarter of 2019 and from 3% in the second quarter of 2018.
According to an analysis by HotPads, out of the 50 largest metro areas Phoenix has the fastest-rising rents (median of $1,545 a month, up 6.9% year-over-year). Las Vegas is second with a median $1,465 a month, up 6.8% from a year ago.
Sacramento, Atlanta, Riverside and Orlando all saw rent prices rising more than 5% annually.
"The rental market has been heating up over the past year, and renters hoping for a break in prices this year probably shouldn't hold their breath," said Joshua Clark, economist at HotPads. "Permits for new construction have been stagnant and wage growth has been making a comeback, indicating that there will continue to be less supply and more demand through the busy summer season. While low mortgage rates and relief in home prices could give renters an incentive to enter the housing market, those who aren't ready or able to buy will continue to see rent appreciation climb."
Meanwhile, rents are rising at the slowest pace in Houston, New Orleans, Baltimore, and New York cities. In each of these markets, rents are less than 2% higher than they were last year - but the market is speeding up in most of these.
