Rents in April were 4% higher than a year before, according to a report from Zillow. That’s the fastest increase in two years, outpacing home prices which rose by 3%, the report showed.
Rental affordability is getting worse, and it doesn’t look like it will be improving anytime soon. “This is here to stay,” said Svenja Gudell, senior director of economic research at Zillow. “We will continue to see rental increases, and affordability will worsen before it gets better.”
Rents have been steadily rising since 2000 and unlike home prices, which took a hit when the bubble burst, there’s been no disruption to slow rent prices, explained Gudell.
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Photo courtesy of: Khanh Hmoong