Rents are rising quickly. Rents have increased, on average, more than 10% between the first quarter of 2020 and the third quarter of 2021, according to data from RealPage Inc. analyzed by The Business Journals. Many metros, however, are outpacing that growth.
Many rental rates have surged since the COVID-19 pandemic. Pent-up demand and relocations have fueled increases in apartment rental rates, with some markets even seeing more than a 20% growth over the past year. Housing analysts say that rental growth is expected to continue to accelerate in the fourth quarter and into early 2022, but they do raise caution that the current pace of growth isn’t sustainable, The Business Journal reports.
The Business Journal analyzed 50 metro areas tracked by RealPage to determine which areas are seeing faster-than-average rates of rental growth. The top 10 are:
1. Phoenix-Mesa-Scottsdale, Ariz.
- Rental rate change since Q1 2020: 26.2%
- Q3 2021 rental rate: $1,527
2. Tampa-St. Petersburg-Clearwater, Fla.
- Rental rate change since Q1 2020: 23.7%
- Q3 2021 rental rate: $1,556
3. Jacksonville, Fla.
- Rental rate change since Q1 2020: 23%
- Q3 2021 rental rate: $1,353
4. Riverside-San Bernardino-Ontario, Calif.
- Rental rate change since Q1 2020: 22.6%
- Q3 2021 rental rate: $1,950
5. Las Vegas-Henderson-Paradise, Nev.
- Rental rate change since Q1 2020: 22.5%
- Q3 2021 rental rate: $1,366
6. Salt Lake City-Ogden-Clearfield, Utah
- Rental rate change since Q1 2020: 19.8%
- Q3 2021 rental rate: $1,413
7. Sacramento-Roseville-Arden-Arcade, Ga.
- Rental rate change since Q1 2020: 19.8%
- Q3 2021 rental rate: $1,821
8. Atlanta-Sandy Springs-Roswell, Ga.
- Rental rate change since Q1 2020: 19.7%
- Q3 2021 rental rate: $1,522
9. Fort Lauderdale-Pompano Beach-Deerfield, Fla.
- Rental rate change since Q1 2020: 19.5%
- Q3 2021 rental rate: $1,975
10. Greensboro/Winston-Salem, N.C.
- Rental rate change since Q1 2020: 19.2%
- Q3 2021 rental rate: $1,043