With spring fast approaching, here’s a look at what to expect when it comes to rental prices in the United States and around the world.
(Jenny Starrs/The Washington Post)The national average rental price in the U.S. rose to $2,096 per square foot last year, the highest in at least seven years, according to data from the National Association of Realtors.
The median rent for a one-bedroom in Manhattan rose to more than $2.4 million in March, up from $2 million a year earlier, according the NAR.
The rental price of a three-bedroom apartment in San Francisco, for example, rose by about $700 to $1,700 per square feet.
In the Boston area, the median rent rose by $300 to $5,400, up by about 10 percent from last year.
And the median rental price for a two-bedroom rose by an average of $1.8 million to $3,400.
“We’re seeing the strongest rental growth since 2012, and the median price is actually up, in a lot of cities,” said Tom Lavin, chief economist at real-estate brokerage RE/MAX.
“So the market is clearly very supportive of renting, even as prices continue to go up.”
The rental growth is helping to fuel the national housing market.
The nation’s median rent climbed to $924 per square inch in March from $907 a year ago, according a report from the real-world median-rent website RentBusters.
Renters in New York City, where rents are high, saw their median rent jump more than 10 percent last month to $716 per square meter, up $40 per square-foot from last month.
Rent in San Jose, where the national median is $1 the highest, rose nearly 10 percent to $831 per square, according RentBuster.
Meanwhile, the national average price of rental homes climbed by $100 per square yard in the last quarter of 2016, up more than 8 percent from the year before, according RE/Max.
The National Association for Realtor has been tracking national median rents since 2001.
The group tracks rents for the top 1 percent of American households and excludes the bottom 20 percent.
The group found that median rent growth for the U:Hs grew more than 2.5 percent between 2007 and 2017, to a record $2 trillion.
In its most recent survey, the group said rents in the nation’s 20 largest cities are now up about 7 percent over the last three years.
That growth was fueled by a surge in rents in cities with a large population, such as Los Angeles, San Francisco and Seattle.
“Rent growth is an important part of the housing market,” said Kevin Shoup, president of the NARE.
“If it doesn’t continue to grow, housing prices are going to continue to fall.”
While the UHs growth was relatively flat last year compared to the last two years, it was driven by growth in San Diego, which had its highest median rent of the year.
In January, San Diego’s median apartment rent was $1 million.
San Francisco had the second highest median rental of the past three years at $1M.
The national median rental was $3.6M last year in Seattle, according NAR data.