According to a recent report from Zillow, rent prices in April were 4 percent higher than last year. This is the fastest increase in two years, even outpacing the 3 percent rise in home prices. Svenja Gudell, the Senior Director of Economic Research at Zillow, stated that, “We will continue to see rental increases, and affordability will worsen before it gets better.”
This statement is in line with what research has revealed. Rents have been steadily increasing since 2000. While the real estate bubble burst, there has yet to be a disruption to slow rental prices nationwide. Gudell went on to say that, “Income hasn’t kept up with rental increases. You are having to spend much more your monthly income on rent and it’s a concern. It’s a national concern.”
To make matters worse, there is an increase in the demand for rentals. Gudell conclude that, “Places hard hit like Seattle, San Francisco and Denver are having a hard time keeping up and building enough units to satisfy demand.” Surprisingly, statistics show that renters in San Francisco face a nearly 15 percent rise in rent, while those in Denver have seen an increase of 11.6 percent since last year. Here are some of the hardest hit cities:
- San Francisco, 14.9 percent
- San Jose, 12.9 percent
- Denver, 11.6 percent
- Kansas City, Mo., 9.5 percent
- Portland, Ore., 8.6 percent
- Charlotte, N.C., 6.6 percent
This has a trickle effect which keeps many on the rental ride. While low mortgage rates make home buying an attractive option, large rent checks make it difficult to save for a down payment. It is estimated that homeowners typically pay an average of 15.3 percent of their income on their mortgage payments each month while renters pay roughly 30 percent on rent.
Finding the Right Renters
With an increase in the demand for rental units, landlords are likely to have multiple potential tenants competing for the same space. While this may be a landlord’s dream, it is important to take the right steps to choose the right renters. Checkpoint Screening is here to help you do this. Our wide range of background screening services can give you accurate and thorough information about your potential renters, from their credit history to any criminal background they may have. Protect yourself, your business and your other renters by ensuring you choose the best renter for your unit.