Rent rates rose in 2019 and will continue to rise in 2020 because people are renting more and renting longer than they did before.
On a national level, median rental rates rose from 4.1% for one-bedroom units, reaching $1,078 per month by the close of 2019. In the same span of 2019, rental rates jumped up to a median of $1,343 for two-bedroom units – an increase of 5.5%.
This is good news for real estate rental property investors…if you’re in the right location, location, location!
You see, these findings were made by Abodo.com. They simply took over 1 million listings for one- and two-bedroom apartments in the largest 110 cities in the country.
Wonder why rents are rising so fast in these cities?
The economy is stronger in many of these cities and attracting more people who are willing to pay higher rents located in proximity of their job.
So then, the game plan is to look closely at the job market in your area of real estate opportunity to determine the viability of the economy. If your real estate is located in a place that’s attracting jobs, you could potentially look to increase rental rates.
The comps in the neighborhood that you’re in will also give you feedback on this.
States with Biggest Rent Increase
According to Clare Trapasso, writer for Realtor.com, rents increased the most in Utah. People moved from California to Utah for jobs and lower cost of living. Rents also rose in Wisconsin to $945 a month, a 3.02% increase in the state.
States that Shocked Us
You probably wouldn’t believe it, but Detroit made the list as the city that say the highest percentage jump in rent rates. Yes, average monthly rents increased by an eye-popping 7.48% in the Motor City, reaching $886 a month for a single bedroom apartment.
Apparently, there are new jobs attracting people to the city instead of the lack of jobs moving people out – way to turn things around Detroit!
Another city to shock the world with an actual increase in rent is Cleveland – yes, Cleveland! Rent for a one-bedroom unit increased to 3.85%, translating to $782 a month.
Highest Rents in the Nation
Still, Trapasso shares that the state with the highest rent price is Massachusetts – where rent was a jaw-dropping $2,218 a month…for a one-bedroom apartment! If you’re curious who’s got second highest rent in the U.S., that honor goes to Hawaii, coming in at $1,880 for a one-bedroom apartment.
Now these aren’t the nations highest rent cities. The cities with the very highest rental rates go to those we already know, New York and San Francisco, with rents at $3,082 and $3,877 a month for a one-bedroom unit.
Rents Fell the Most in These Cities
While real estate investors are enjoying higher rents in all of the above cities, every one of our fellow-investors aren’t likely to show up to this celebration.
You see, rental prices actually fell in Dayton, Ohio in 2019 from 4.11%, reaching $758 a month for a one-bedroom unit. Rent also slumped a bit in Law Vegas, hitting $1,227 a month, which is a 2.55% drop in rental rates in the entertainment capital of the world.
Take all of this into consideration as you plan your real estate investment moves in 2020 and beyond.
If you’re ready to take the next step towards your own real estate investment success, you should connect with the team here at Utz Property Management to learn more about how we can help you achieve your goals as a real estate investor.
Schedule your PROPERTY PROFITS STRATEGY SESSION today.
In This FREE 1 Hour Session, an expert real estate investment coach from our team will work personally with you to…
- Examine your current real estate investment portfolio/plans to see what’s working and what’s hurting. Discover where you’re making money and losing it.
- Search for the diamonds in your backyard, the low-hanging profit opportunities that can be made with minor tweaks.
- Present the best path for tweaking your investment game-plan so you can build wealth faster, with more predictability and stability.