Rental Demand Pushes Rates Up

Daily Real Estate News April 22, 2008

Rental Demand Pushes Rates Up

It’s getting harder for renters to find an affordable place to live with rents rising and availability falling.The median asking rate for rentals has jumped 14 percent, from $591 a month during the fourth quarter of 2003 to $673 a month in 2007, according to the U.S. Census Bureau. Vacancy rates are down from last year, and average rent is projected to rise 5.3 percent in 2008, up from a 3.1 percent increase in 2007, according to the NATIONAL ASSOCIATION OF REALTORS®."We've seen demand for rental housing go up," says Mark Obrinsky, chief economist at the National Multi Housing Council. "The ownership side is retrenching, and we're seeing the demand going to the rental side. There's a lot of hesitancy to buy. Others can't get (financing), so they're remaining renters longer."Here are median rents for the first quarter of 2008 in 12 major metropolitan areas: Atlanta: $986Austin: $907Boston: $1,645Chicago: $1,355Las Vegas: $1,056Los Angeles: $1,699Miami: $1,368New York: $1,751Phoenix: $939San Francisco: $1,810Seattle: $1,211Washington D.C.: $1,687Source: Rentometer and USA Today, Mark W. Williams (04/22/2008)

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