The typical rent payment in the U.S. has increased for four consecutive months, according to a new report from Zillow.
The report said the typical rent in October was $1,600, up 2.3 percent from one year earlier. The rate of growth has slowed in each of the past three months, but Zillow said yearly rental price growth likely will continue to accelerate through the end of the year.
“Despite some fearful headlines, the U.S. economy keeps on trucking, and that is reflected in the continued rent growth across the country. The unemployment rate remains near record lows and wage growth keeps adding to renters’ pocketbooks,” Zillow Director of Economic Research Skylar Olsen said in a release. “The story of today’s rent growth is far from just that of a few expensive superstar cities – rather, growing demand for rental housing is bumping up against limited housing supply and low vacancies all across the country.”
According to the report, rents increased in most of the country, falling in only two of the 35 largest metros (1.8 percent annually in Columbus, Ohio and 0.6 percent in Houston.) Since October 2018, rents increased significantly in Las Vegas (3.1 percent); Kansas City, Mo. (2.8 percent); and New York (2.3 percent).
Meanwhile, rental inventory fell 6.3 percent in October, the biggest drop in 18 months.