Rental prices skyrocketing

Published 8:30 am Thursday, February 10, 2022

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Raising prices at the gas pumps and grocery store checkout lines are reminders that inflation is at an all-time high. Now those skyrocketing prices have hit the home and apartment rental properties.

If you currently rent or are looking to rent, be prepared to pay much more than in years past.

According to CoreLogic, a recent study in property information, U.S. single-family rent growth increased 11.5% in November 2021, the fastest year-over-year increase in over 16 years, and increases are expected to continue well into 2022.

“The study measured rent changes among single-family rental homes, including condominiums, using a repeat-rent analysis to measure the same rental properties over time. The November 2021 increase was more than three times the November 2020 increase, and while the index growth slowed in the summer of 2020, rent growth returned to its pre-pandemic rate by October 2020.” A release from CoreLogic stated.

According to the Multifamily Outlook report from Freddie Mac, annual rent growth is forecasted to be 3.6% in 2022, with rising rent expected in every major U.S. housing market.

According to the report from Freddie Mac, during the early days of the pandemic, many residents left expensive, densely populated, urban city centers for less expense and less dense suburban locations. That demand for a lower-cost living continues causing demand for rental properties across the nation.

On Monday, Feb. 7 was showing rental homes in Lunenburg County to range anywhere from $850 to as much as $1,500 a month for a three-bedroom home.

Two-bedroom homes were on the lower side ranging from $675 to $750 per month.

Statewide reports that the average rent for a three-bedroom home in 2021 was $1,757 a month compared to 2020 at $1,437 a month.

When it comes to apartment complexes, occupancy in the U.S. has hit an all-time high, meaning anyone looking for a new apartment is going to have a tough time finding a vacant unit.

According to data from the property management software company RealPage as of January professionally managed apartment units were at 97.5% capacity the highest figure on record,

The real estate industry generally considers 95-96 % occupancy as full.