Renter confidence over their finances is on the rise. That is good because that coincides with a recent survey finding that shows property owners plan to increase rents higher still this year.
Sixty-one percent of property owners say they plan to raise the rent on at least one of their rental properties within the next 12 months, a new survey from realtor.com® shows. The most common increase will be between 5% and 10%, according to the survey.
Here’s a breakdown of property owners’ planned rent hikes for this year:
- Less than 5% increase: 38%
- 5 -10% increase: 45%
- 10-15% increase: 9%
- 15-20% increase: 5%
- More than 20% increase: 3%
As rental prices are expected to continue to rise, the majority of renters don’t seem to be shaken up over recent increases. They seem to have gotten a better grasp over their finances compared to a year ago. Eighty-two percent of renters said they have not missed a rental payment over the past 12 months, which is up significantly from 57% in September 2021. More than three-quarters of renters—77%—say they don’t expect to miss a rent payment in the next three months either.
“As the pandemic dragged on longer than expected, many renters struggled to make payments, as jobs in a number of industries including travel and hospitality were hard to come by,” says Danielle Hale, realtor.com®’s chief economist. “Even those with jobs grappled with pandemic-related work disruptions that left many feeling unsure about their finances. However, we are seeing a light at the end of the tunnel. The job market has made a dramatic comeback and despite rising prices across the board, renters are feeling more financially stable and overwhelmingly confident in their ability to pay their rent.”