If it seems like your monthly rent
check is getting bigger at a
faster rate each year, it’s not
your imagination.
According to new data, the
average cost to rent an
apartment is growing at nearly
three times the rate of inflation!
4%
1.3%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Rent Inflation
Yearly Increase in Average Monthly Rent vs. Inflation
69.2%
67.2%
64.4%
62%
64%
66%
68%
70%
72%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
U.S. Home Ownership Rate Since 2004
This implies that, over the past
decade, an estimated 5.9 million
households that would have otherwise owned a home have
chosen to rent instead.
To make up for this, builders of
multifamily housing units have tried to keep up with the
increased demand.
0
50
100
150
200
250
300
350
400
2000 2002 2004 2006 2008 2010 2012 2014
Multifamily Building StartsThousands of units, seasonally adjusted annual rate
But because builders haven’t
been able to increase supply fast
enough, apartment vacancy
rates have dropped to the lowest point in more than a decade.
In 2007, the average rent across
the country was just over $1,000.
Today, it’s almost $1,200. That’s
a nearly 20% increase!
$1,164
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2004 2006 2008 2010 2012 2014
Average Monthly Rent
According to Nick Timiraos from
The Wall Street Journal: “It could
get a touch harder in 2015 and
2016 for landlords to keep raising
rents as aggressively.”
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