25 Cities with Biggest Rent Hikes (Full Nationwide List)

The rental market is ripe for single-family rental investors, even on the secondary side, with the top markets on the list showing rents increasing by above 10% in the first quarter. Continue below…


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RentRange, a provider of market data and analytics for the single-family rental industry, ranked the top 25 U.S. Metropolitan Statistical Areas by average rental rate increase for single-family homes between first quarter 2016 and the same quarter in 2015.

“The single-family rental market across the U.S. continues to offer significant opportunity for investors,” said Wally Charnoff at RentRange.

“The robust data available today empowers even non-institutional investors to analyze geographies and select the investment locations throughout the U.S. that are most opportune, as opposed to being limited to their own backyard,” said Charnoff.

And it’s not the usual order of names in the top 25, as three new markets take spots in the top 10 compared to last quarter: Naples-Marco Island, Florida, Syracuse, New York and Milwaukee-Waukesha-West Allis, Wisconsin.

Here is a chart of the 25 markets with the biggest rent hikes:


HousingWire’s latest May issue covered today’s rental surge and why more people are opting out of homeownership. Did the Great Recession launched a new era of renting versus buying that will eventually result in a nation where more people rent their homes than purchase them?

At the height of the housing bubble, 69% of American households owned their homes. As of 2015, that number had fallen to 63.7%. Now it’s rising, as are rents. But where the renters suffer, the investors are winning, in more ways than one.

True, in the latest surveillance report from Kroll Bond Rating Agency, these properties continue to produce strong returns.

And this is why:

“Contractual rental rates have continued to increase, vacancy rates declined (but remain above issuance levels), tenant retention rates have remained relatively stable, and delinquency rates have remained low,” the report states.

But what’s more, the securitized assets themselves are appreciating as well.

“The 90,649 properties underlying the subject transactions have, on average, appreciated in value by 10.2% since the issuance dates of the respective transactions, as inferred by changes in CoreLogic’s zip code-level Home Price Index.” the report concludes.

If you are ready to take advantage of this investing market, start here:

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Home Ownership Is About To Hit An All-Time Low (latest data shows historic rock bottom)

After gains in the second half of 2015, the homeownership rate fell to just 63.6 percent, seasonally adjusted, in the first quarter of this year, according to the U.S. Census Bureau. Homeownership hit a high of 69.4 percent in 2004, during one of the biggest housing booms in history. That was also when mortgage lending was arguably at its loosest level in history. The homeownership rate is now just one-tenth of 1 basis point higher than its all-time low in the second quarter of 2015.

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Economists continue to point to a recovering job market as fuel for growth in the housing market, but for young Americans, just having a job does not translate to homeownership. High levels of student loan debt, tight mortgage underwriting standards and overheating home prices are all contributing to very low homeownership rates among the nation’s youngest workers. Homeownership among those aged 25-34 today is nearly 10 percentage points lower than it was a decade ago. First-time homebuyers are still barely 30 percent of today’s buyers; traditionally, they comprise 40 percent of homebuyers.

“Rental affordability remains a big problem in many places, and that makes it harder to save for a down payment,” said Jed Kolko, an independent economist and senior fellow at the Terner Center for Housing Innovation at University of California, Berkeley. “We’re still seeing relatively few first-time homebuyers because young people are buying homes later than they used to. Some of this is a long-term shift toward marrying and having children later in life. Some of this is that the recovery has been slow among young adults.”

Most millennials are still on the young side for homeownership. In contrast, homeownership has actually increased among older Americans. This may be because renting is so expensive, and because the expected migration of baby boomers from their larger houses in the suburbs to rental homes has been slow to take off, due to the recent recession and historic crash in home prices.

Household formation is now increasing, but two-thirds of it is on the renter side. Just one-third of new households were owner-occupied homes. Homeownership is highest in the Midwest, where houses are cheapest and lowest in the West where homes are most pricey.

Watch how homeownership has changed by percentage in the states since 1950.


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