2024 US Rent Hike: Exploring Rental Aid and Anticipated Increase

Updated on February 6, 2024

Hey there! Checking in on the latest buzz about US Rent Increase in 2024. Wondering about the expected rise and rental assistance? With the ongoing inflation, dollars are tight, especially in NYC where rent keeps climbing. In 2023, median asking rents soared by over 10%. Now, experts say US Apartment Rents in 2024 have dipped in the past months, showing a 0.7% decrease from last year. The median asking rents for the top 50 metro areas dropped to $1,747. Stay in the loop!

2024 U.S. Rent Surge

The latest data from the U.S. Census Bureau reveals that more than 36% of households are renters. Since the onset of the pandemic, renting has hit record highs, with an overall increase of 29.4%, according to Zillow. Single-family homes saw an even greater surge at 35.7%. Multifamily homes experienced a 23.3% rise, but growth rates have been slowing since the peak of 16.2% in February 2022. As of the November rental report released on December 7, the average asking rent in the U.S. is now $1,982, marking a 3.3% increase from the previous year. Stay informed!

Direction of U.S. Rent: Rising or Falling?

In November, asking rents in the USA dipped by 0.2%, signaling a stabilization in the rental market. This is a slight decrease from the 0.1% growth observed from August to September. Zillow notes that before the pandemic, rent growth during this time of year remained relatively steady. Despite peaking in February 2022, overall rent prices are still below pre-pandemic levels. The recent decline is attributed to a surge in newly constructed multifamily properties entering the market, with over three in ten rental listings offering concessions, as per Zillow.

For single-family houses, the yearly rent increase is higher than that for multifamily rents. In November, the average rent for a single-family house was $2,148, a 0.1% decrease from October. Meanwhile, multifamily dwellings averaged $1,845 in November, marking a 0.3% decrease from October. Zillow suggests that high financing costs may slow down the expansion of new multifamily developments in the future. Despite this, renting is currently deemed more affordable than buying, driving up demand for rental properties. Stay tuned for updates!

Yearly Rent Hikes Across U.S. Cities

Here’s the latest ups and downs from Zillow’s analysis of housing data in 50 cities.

For all types of rental housing:

  • Providence, R.I.: +7.3%
  • Hartford, Conn.: +7.2%
  • Cincinnati: +6.4%
  • Columbus, Ohio : +5.8%
  • St. Louis: +5.7%

For Single-family rentals:

  • Providence, R.I.: +9.4%
  • Hartford, Conn.: +9.2%
  • Cincinnati: +8.3%
  • Milwaukee: +7.2%
  • Chicago: +6.8%

For Multifamily rentals:

  • Providence, R.I.: +6.9%
  • Hartford, Conn.: +6.5%
  • Boston: +5.6%
  • Columbus, Ohio: +5.6%
  • Cincinnati: +5.5%

Anticipated Rent Decline in Select U.S. Cities in 2024

With high mortgage rates and increasing rents, more property owners are expected to rent out their spaces in 2024, leading to a greater availability of flats. This surge in options will empower tenants to decide whether to sign a new lease or extend their current one, as suggested by experts.

Despite regulations preventing landlords from significantly hiking rents in 2024, a substantial reduction in rents would require approximately 41,000 additional rentals entering the market. This influx is needed to fully counter the inventory decline that took place after 2019.

 

 

 

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