Apartment rent rates continue to rise across the country with the national rent index increasing in each of the first five months this year. Month-over-month growth for May was 0.5%, while year-over-year growth at the national level stands at 2.6%. And unfortunately for apartment renters, it appears the worst is yet to come.
The national rent index has already increased more in 2017 than it did in the whole of 2016. Between December 2015 and December 2016, apartment rent rates increased by a total of 1.6%. This year, just six months in, rents have already gone up by 2.1%. And we’re just entering the busy season for renting which means that apartment rents are likely to increase even more in the coming months. Based on previous year trends, rents could go up by another 1.5% by the end of summer.
At the local level, rates appear to have significantly increased in most of the nation’s biggest markets, Texas included. Eighty-eight of the nation’s largest cities experienced positive year-over-year rent growth with 86 of these cities experiencing increases in the last month. A number of the markets saw substantial growth; 13 recording year-over-year growth rates of more than 5% and 39 recording growth above 3%.
Texas Leads the Nation
Here in the Dallas/Fort Worth area, Arlington saw the fastest growth in apartment rent rates in the whole country, up 8.2% in the past year.
A number of cities in the DFW area have also recorded some worrying figures for anyone who’s considering renting an apartment. In most cities in the Dallas area, apartment rent grew above the national average.
In Fort Worth, for example, year-over-year rents increased by 4.5%. Considering that the median apartment rent in the Fort Worth was $1,170 in June 2016, you can expect to pay upwards of $1,220 per month if you’re planning to rent an apartment in “Cowtown” in the coming months.
The situation isn’t much better in Dallas proper where apartment rent rates have risen 3.2% over the past 12 months. Given that the median apartment rent in the Dallas stood at $1,590 this time last year, you should expect to pay $1,640 or more if renting there in the coming months.
Houston is the only area that recorded declining rents. Year-over-year rent rates in eight of the ten Houston metro cities actually dropped, with the area posting an average decline of close to 3%. Given that the median apartment rent in the area was $1,520 in 2016, you can expect to pay around $1,475 if renting there soon. So now could be a good time to start looking. Keep in mind that while rent rates in Houston have fallen, competition is still extremely fierce as more and more people call Houston home.
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