"Median rent is appreciating more quickly this spring than last in 27 of the 35 largest U.S markets," according to the May Zillow Real Estate Market Report. "In some of the nation's most expensive rental markets, median rent is appreciating more slowly now than last spring. In Seattle, for example, where annual rent growth has been among the highest in the country, rent appreciation has slowed from a 5.8% annual growth rate last spring, to a 3.3% annual growth rate now. A similar trend holds true in Los Angeles, Portland and Boston."
Americans who rent all over the country are noticing a steady rise in the cost of rent. Zillow's study revealed that, over the last 11 months, rent growth has been increasing by between 2% and 3% in annual appreciation rates. Overall, median rent rose to an average monthly rate of $1,440, that's a 2.1% increase from last year.
This trend affects the 32.5% of U.S. adults who identify as Renters, according to AudienceSCAN. Nearly 44% of Renters are under the age of 35 and 39.7% have annual household incomes of below $25,000.
"Over the past two years, rent growth slowed across the country as new apartments hit the market and renters with the financial means to do so increasingly became homeowners," said Zillow Senior Economist Aaron Terrazas. "The slowdown in rent growth was most prominent in the markets that moved most quickly to add units; either because it was easy to build or because of local demands. But the ever-swinging pendulum is again on the move. This spring rent appreciation has perked back up nationwide, though it remains well within a long-term sustainable range. The ebb-and-flow of supply and demand is following slightly different timeliness in different markets, but over the past two years, we have seen similar trends in markets from the Southeast to the Northwest."
Within the next year, only 9.4% of Renters have the intention of moving to a new or different house, according to AudienceSCAN.
For Americans Who Rent, Buying a House Isn't an Option
Americans who rent aren't likely to become homeowners any time soon. With rent rising at a steady rate, it's difficult to save up a down payment for a house that will make mortgage payments even comparable to renting prices. This is especially true since Zillow found that mortgage rates are steadily increasing as well. In May alone, mortgage rates rose from 4.29% to 4.38%. On top of it all, the number of houses available for purchase is also declining, which will definitely hike up the price.
Landlords can advertise their rental rates best through TV ads. According to AudienceSCAN, TV is where 44.2% of Renters get their local news, and it's also where they saw commercials within the last year that lead 56.5% of them to take action. A little over half (50.6%) of Renters also took action last year after receiving ads or coupons in their mailboxes and 49.7% responded to ads they saw on a social network.
AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. Media companies and agencies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.