Posted August 25, 2017 by RentJungle

Lawrenceville has been one of the hippest, hottest neighborhoods in Pittsburgh for more than half a decade. Whether you want to snag a baguette at La Gourmandine (the best bakery in town!), are craving a smoked Kielbasa from Franktuary, or want to dance your heart out at Cattivo, Lawrenceville is bustling with fun and culture. Rental prices had been consistently increasing for this cool east end neighborhood, but in the past year, rental prices have actually dropped slightly, making it a great time to move to Lawrenceville.

Location Location Location

A neighborhood in Pittsburgh’s East End, Lawrenceville is located along the south bank of the Allegheny River. With Highland Park to its east, the Strip District to its west, and Bloomfield and Garfield to the southeast, Lawrenceville is located in the apex of Pittsburgh culture. Across the 40th Street Bridge on the other side of the Allegheny River lies Troy Hill and Millvale.

Lawrenceville is long and skinny in shape, stretching along the Allegheny River. The neighborhood runs along Butler Street, a long road paralleling the river that is teeming with restaurants, shops, and nightlife.

Lawrenceville is divided into three separate sections. Upper Lawrenceville is the furthest northeast, wedged between the Allegheny cemetery and Highland Park. Further away from the main throng of businesses on Butler, Upper Lawrenceville tends to be calmer and more residential than the rest of the neighborhood.

Central Lawrenceville encompasses the heart of the neighborhood’s main street. Located roughly between 40th Street and the cemetery, living in Central Lawrenceville puts you right at the heart of the culture and nightlife of this vibrant neighborhood.

Lower Lawrenceville falls southwest of 40th street, between Central Lawrenceville and the Strip District. Though slightly further from the hustle and bustle of Central Lawrenceville, there are many great neighborhood spots in the lower section such as Round Corner Cantina and Espresso a Mano. Up the hill, the Church Brew Works is an awesome spot to grab a pint with friends. Lower Lawrenceville is also the section of the neighborhood closest to downtown; it’s central location making it an easy commute to many other parts of the city.

Each section of Lawrenceville has it’s own rental market. The central location and proximity to downtown makes Lower Lawrenceville the most expensive of the three. The average apartment rents for $1657, making Lower Lawrenceville the seventh most expensive neighborhood in the city.

Central Lawrenceville is slightly more affordable, with rents averaging around $1264. The more residential Upper Lawrenceville is significantly cheaper, with the average rent coming in at about $902.

A Hot Market, Recently Cooling

As Pittsburgh’s revitalization and cultural efforts have pushed the city into the national spotlight, rental prices in the Steel City have shot up over the past decade. Between 2011 and 2015, rental prices more than doubled in the city. In April of 2011, the average rent for a two-bedroom apartment in Pittsburgh was only $772. By November 2015, average rent for a two-bedroom apartment had jumped to $1613. That is a 108% increase of rental price in only four and a half years.

However, in the past year there have been signs that the housing market is cooling. At its peak, the average rental price for a two-bedroom apartment in Pittsburgh clocked in at $1645. That was November of 2016. By July 2017, the average rent of a two-bedroom apartment in Pittsburgh had dropped to $1467; an 11% drop in rental prices in the span of only eight months.

average-rent-per-month-in-lawrenceville-pittsburgh-pa

Lawrenceville rental trends have followed a similar trajectory. In February of 2015, the average rent for an apartment in Lawrenceville was a little bit more than $1100. Rents in the neighborhood steadily increased, reaching an all time high of $1600 a month in December of 2016. However, in recent months, market prices have begun to dip back down. Six months after that peak, in June of 2017, the average monthly rent of an apartment in Lawrenceville was around $1250, the lowest average rent for the neighborhood in nearly a year. Average rent in Lawrenceville varies dramatically month to month, but recent data suggests that we are seeing a downward trend in housing costs in this hip neighborhood.

As Pittsburgh’s job market continues to rapidly expand, wages across the city have shot upwards. Studies found that after inflation, the average wage in Pittsburgh grew nearly 6% annually from 2004 to 2015. Though most of this income growth is happening in tech, health, finance and other parts of the so-called knowledge sector, Pittsburgh is one of the few metro areas that showed positive wage growth for low-income earners with an annual income of about $23,000. Employment and wages in the steel city are both growing at a rate that outpaces the national average.

Though faring better than blue-collar workers in other cities across the nation, low-income earners in Pittsburgh are still struggling with the rapid rise in rent. A stagnant minimum wage has left the lowest paid workers unable to keep up with skyrocketing housing costs. A research group in Washington DC calculated that a worker would need to work more than two full time minimum wage jobs to afford a two bedroom apartment in Pittsburgh, with a median cost of $822.

The city council’s resolution to raise the minimum wage in the city from $7.25 to $12, as part of an incremental plan towards a $15 minimum wage, is certainly a step the right direction. Paired with these cooling rental trends, signs point to housing in Pittsburgh becoming more affordable again.



Posted August 24, 2017 by RentJungle

Pittsburgh is one of the coolest, most affordable cities in America. For $45k a year, you can score a sweet set up and enjoy all this happening steel town has to offer, if you know what to look for.

Most experts agree that you should spend about 30% of your income on rent. That means if you make $45,000 per year, you should be looking for places priced at $1125 per month or less. In a city like Pittsburgh that has a low cost of living, you should be able to find some amazing options within that budget.

A Small Apartment in a Happening Neighborhood

Yuppies love the hip restaurants and nightlife of Lawrenceville. cc If you want a one-bedroom apartment in this hot neighborhood, you’ll have to settle for an older building with less flashy appliances and finishings. Also consider turning your search eastward towards the more residential Upper Lawrenceville, which is still walking distance from the attractions of Butler Street.

Living in Lawrenceville is to live in the thick of yuppie culture. Enjoy a margarita on the back patio of Round Corner Cantina, or dance the night away at Belvedere’s. During the daytime, you can take a stroll through the Allegheny Cemetery, and stop by La Gourmandine Bakery for the best pain au chocolat in town.

Snag a Two Bedroom in the East End

If you are hoping for a little bit of extra space, you can swing a two-bedroom apartment in Highland Park for anything between $850 to $1,200 a month. Use the second bedroom as a baby nursery, or transform it into a home office or art studio. This charming residential neighborhood is just south of the sprawling Highland Park and the Pittsburgh Zoo and Aquarium.

Live Close to the Nightlife

If sports bars and fried food are more your speed, you might enjoy living in the Southside. And with two bedroom apartments ranging from $850 and $1,200 a month, you can afford to spread out a little bit. If you don’t need the extra space or are looking to save some money, a one-bedroom apartment is only $750 a month. Walk down Carson Street and load up on shepherd’s pie from Piper’s Pub, or settle back with a pint of beer and a big order of wings at Fat Head’s Saloon.

An Industrial District Gone Modern

rj_0824172_4

Formerly a wholesale and warehouse district, new developments have transformed the Strip District into one of the coolest new neighborhoods to live in. The old school vendors still hawk bargain produce on street corners and bulk spices at the Pennsylvania Macaroni Co., but the Strip District is also a wealth of cool restaurants and culture. Check out the latest exhibition at the Society for Contemporary Craft, and grab a gourmet sandwich from Thin Man Sandwich Shop across the street. After dark, sample the eclectic dinner menu at Kaya or hit up the Cavo Nightclub for a night out on the town. As developers have only recently realized the potential of this neighborhood, housing options are limited. You can find a studio apartment priced between $900 and $1300 a month in one of the new high-rises, but the easy access to downtown and the killer river views will make the steep prices worth it.

That North Side Charm

Cross the Allegheny River and settle down in one of the charming townhouses in Pittsburgh’s North Side. Rental prices vary widely based on condition; a well maintained one bedroom costs between $800 and $1000 a month, while the same price could also get you a more run down two bedroom apartment. Just across the bridge from Downtown Pittsburgh, the North Side is home to numerous cultural institutions, including the Children’s Museum, the Mattress Factory art museum, the Aviary, and the New Hazlett Theater.

Spread Out in a Rental House

If you don’t mind finding a roomie, a sweet house can easily be split two or three ways. A historic, three bedroom house in Squirrel Hill can be had for around $2000 a month. With two housemates, rent comes out to a little bit less than $700 per person. Or only take on one roommate for a rent of $1000, and a spare room to do whatever you’d like with. Squirrel Hill is conveniently located next to Carnegie Mellon University, with a slew of shops and restaurants running along Murray Ave. On the edge of both Schenley and Frick Parks, this charming residential neighborhood is a perfect place for families.

Affordable rental houses are aplenty in Bloomfield as well. Rental prices vary widely with two or three bedroom houses going for as cheaply as $950 a month, or for as much as $1600. This rapidly developing Pittsburgh neighborhood is known for its distinctive rowhouse architecture. Don’t miss Little Italy Days every August!

Every Pittsburgh neighborhood has it’s own personality. If you want to rent a small studio in the hottest neighborhood, check out the apartments in Lawrenceville. If you’d rather trade the cool factor for some extra space, consider renting a house in Highland Park or Bloomfield. No matter where you end up, this steel town is sure to win your heart.



Posted June 09, 2016 by RentJungle
While many of the baby boomer generation might say that the “American Dream” is fading away Millennials might argue differently. The Millennial’s American Dream hasn’t faded, it’s just morphed to suit the new generation.It’s predicted that as Millennials get older their priorities might begin to shift back towards the traditional American Dream values of home ownership and starting a family. But for now, the group born between 1980 and 2000 has different priorities when it comes to searching for a place to lay their heads.Many Millennials would give up spacious rooms and quality amenities in exchange for being at the center of a technology hub like Silicon Valley. They want to be within walking, biking, or public transportation distance of a downtown area. The average home size has fallen from 995 square feet to 950 square feet of space which really highlights the decreased importance placed on the size of an apartment today. People are in search of efficiency and convenience rather than wide open spaces.Millennials are also searching for flexibility. Home ownership doesn’t afford that. Strapped with a mortgage and a home to take care of, it makes it difficult to pick up and move at a moment’s notice. They would much prefer the ability to move to a new city when the fancy strikes.Millennials would rather be debt-free and unhindered than stuck in a 30 year mortgage on top of their already staggering student loan debt.While certainly not true for all, a magnificent kitchen is no longer a top priority when you can order takeout or Seamless and have food delicious delivered to your doorstep. What used to be a necessity has fallen to a not-exactly-necessary addition.The American Dream doesn’t consist of owning a home and a car and being married by 25 anymore. Perhaps it was living through the Great Recession and watching their parents struggle that made Millennials wary of settling down. Whatever the reason, the Millennial generation has morphed the American Dream to suit their wants and needs.What is the American Dream to you now? Has it dissipated to nothing more than a dream or has it just been altered? Share your thoughts with us on Facebook and Twitter.


Posted April 18, 2016 by RentJungle
rentingvsbuyingEach generation is defined with traits and characteristics that are result of the time they grew up. Baby Boomers experienced the moon landing, the Cold War, and Woodstock. Generation X saw the OJ Simpson trial, the wide use of personal computers, and Live Aid. Millennials grew up during the time of the 9/11 attacks, introduction to social media, and the popularity of reality of TV. Some differences between the generations are obvious like how Millennials prefer electronic communication while Baby Boomers like to have hard copies. While others are less apparent such as why Baby Boomers are more loyal to employers and Generation X is more loyal to their professions.

When it comes to renting and buying homes, each generation has different preferences as well. In the 1970s, couples usually only rented for about 2.6 years before buying their first home. Nowadays, the median age of first-time home buyers today is around 32.5 years old. To put that in perspective, this means that for roughly 14.5 years Millennials are either renting or living with family after they graduate high school.

In another aspect, Millennials are different from Generation X as well. In the 1980s, around 52% of first-time home buyers were married. Today, only 40% of people buying their first house are married.

Not everything has changed over the years, the median income for first-time home buyers has been around $54,000 (adjusted for inflation) since the 1970s. But there is a major difference in how much they are spending on their first house in relation to that income. In the 1970s, people spent around 1.7x their annual income while today they spend about 2.8x their annual income. This may explain why 58% of people share buying single-family homes.

Overall, each generation has its own struggles, strengths, and experiences that shape the world they live in. It will be interesting to see where Generation Z takes us and how they will handle the renting/buying process.


Posted December 04, 2015 by RentJungle
Apartment Market TrendsBig, spacious, and prestigious or small, compact, and resourceful? Believe it or not, when it comes to choosing a home more people are shifting focus to the second set of adjectives. It has become known as the tiny house movement and it’s the latest housing trend that’s making a bigger-than-life statement.

From 20-somethings paying off student loans to downsizing retirees, people of all walks of life are calling these tiny dwellings home. Let’s dive deeper into the fascinating topic:

What is the definition of a tiny home?

The truth is it is quite subjective. But the general rule of thumb, according to The Tiny House Community, is a house that is less than 400 square feet, whether on wheels or a foundation. A “small home” is considered to be between 400 and 1000 square feet. The tiny house movement is a simple one –it’s a social movement where people are choosing to downsize the space they live in.

Why are people shifting gears towards tiny living?

For some, it’s a refreshing lifestyle change, adjusting to a smaller space where you can only fit your essentials. It’s a complete shift in focus from today’s usual message and standards. Your belongings and possessions become fewer, but your freedom and time for relationships and experiences grow exponentially, especially if your house is on wheels allowing you the mobility to travel often.

For others, it’s a combination of the lifestyle change and more concrete reasons, such as financial and environmental concerns. Think Progress reports that Americans spend a shocking 30.2% of their median income on rent, the highest cost burden recorded by Zillow since the real estate firm began tracking the figure in 1979. So it makes sense why so many people are attracted to the alternative of living smaller.

What is the greatest obstacle of tiny house living?

The biggest challenge most people face is finding a place to put their home because of zoning regulations and building codes. Many communities require houses to be at least 1,000 square feet in order for construction of a new home regardless of who owns the land. The Tiny House Community sums up today’s legal standings best by saying:

“Legally, a tiny house on wheels is considered an RV, and a tiny house on a foundation is considered an accessory dwelling unit (ADU). We tiny housers need a new legal definition for a tiny house, separate from an RV or ADU, but that will take time. For now, we need to work within this framework.”

It’s more likely than not you’ve seen these tiny homes on HGTV, daydreamed about their cute design and architecture on pinterest, but the real question remains - could you adapt to the “tiny house, big living” mentality?

(Image courtesy of Tammy Strobel)


Posted October 21, 2015 by RentJungle
Multifamily Housing_ InvestmentsIn the mid-2000’s, investment in the United States multifamily housing sector reached a peak of $100 billion dollars during the year ending June of 2006. Though the numbers from almost a decade ago are impressive, the total in investments for the year ending in June of 2015 have set yet another record. Coming in at over $127 billion in investments, the multifamily housing segment has seen its largest four-quarter total in history - representing a 36 percent growth rate over the last twelve months. This article from urbanland.uli.org sheds some light on this recent trend, and delves a little more deeply into what this could mean for the market in years to come.

Investment in multifamily communities has been robust for several years and this trend continued during the second quarter of 2015, with $30 billion flowing into the sector. The quarter’s total reflects a 35 percent gain over the second quarter of 2014, though a slight decline from the first quarter of 2015 (–3 percent). Multifamily acquisitions represented 27 percent of the total $110 billion invested in U.S. commercial real estate in the second quarter of 2015.

The Los Angeles/southern California area attracted the most multifamily investment in the first half of 2015—$5.3 billion—ahead of Dallas/Fort Worth ($3.0 billion); Washington, D.C. ($3.0 billion); Atlanta ($2.8 billion); and Houston ($2.5 billion).

Cross-border investment in U.S. multifamily totaled $2.1 billion in the second quarter of 2015 (not counting properties acquired through entity-level acquisitions). The first-half 2015 total of $4.4 billion is already higher than the full-year 2014 figure of $3.7 billion. Mexico represented the largest country source of cross-border acquisition capital for multifamily investment (31 percent), due to a significant portfolio transaction, ahead of Canada (29 percent).

“Investment in U.S. multifamily product continues its extraordinary run, reflecting solid confidence in future market and asset performance. Drawn in by solid fundamentals, investor interest in the sector remains high, per sales activity and underwriting trends. Equity and debt investment volumes continued to rise, along with transaction sales prices. Cap-rate declines have been minimal, which signal [that] total projected investor returns are close to bottom,” said Brian McAuliffe, executive managing director, institutional properties, CBRE Capital Markets.

Demand for apartments is unrelenting as new supply has been swiftly absorbed. As a result, the average apartment rent across major U.S. markets is increasing at a pace far above the inflation rate, and the vacancy rate is at its lowest point in nearly 15 years.

Rent growth was widespread in the second quarter of 2015, with 30 of the 62 markets tracked by CBRE posting year-over-year rent increases of 5 percent or more. The apartment vacancy rate across these markets was 4.3 percent in the second quarter of 2015—down 30 basis points from a year earlier and down 300 basis points from the first-quarter 2009 recessionary peak of 7.3 percent. Vacancy is expected to continue to decline through the end of the third quarter of 2015.

Almost 70,000 apartment units were completed within the 62 major markets during the first half of 2015. If deliveries continue as forecasted, the 2015 total will reach nearly 173,000 units—while less than last year’s 181,000 units, the total is more than any other year since 2000.

“Accommodative economic conditions and employment growth will support further strengthening in multifamily fundamentals in the near term. Demographic trends—including the 30-year low homeownership rate of 63.5 percent—suggest that the apartment sector will continue to absorb new deliveries over the next two years,” said Peter Donovan, senior managing director, multifamily, CBRE Capital Markets.


Posted October 01, 2015 by RentJungle
Millennials, or young adults born between 1980 and the early 2000’s, are a generation apart from their predecessors. Takers of selfies, oversharers on social media, and perpetually “lazy”, this generation is coming into adulthood. When it comes time to move out of mom and dad’s house, where will they go? Do they strive for the typical American dream and put a down payment on a house a few streets away from their parents? Or do they opt to stay in the realm of renting? With the cost of renting now exceeding the cost of purchasing your home, you’d think they’d lean towards buying.

 One reason towards millennials being more interested in temporary living than in planting their roots is the predilection towards travelling. The Millennial generation is more interested in travelling than their older counterparts by a 23 percent point margin. The UN has estimated that over 20 percent of international travellers in the world are young people.

 It is also not unusual for this younger generation to take trips spanning longer than the typical vacation. Trips that last 2 weeks, 3 weeks even a month or two are not unusual for this generation of travellers. That’s a lot of time to be spent away from a permanent home. It might even be easier for these adventurers to put their living situation on hold by breaking an apartment lease, especially if their travels are going to be happening frequently.

 For some, moving frequently, not just travelling but actually moving house, is more drawing than staying in the same town for years and years, possibly even forever. Some choose to move for jobs, others for relationships and others just because they enjoy the thrill of a new city and can’t stand to stay in one place for too long. If you’re from a small town, the draw of a big, bustling city can be enchanting and enough to make you pack your bags and jet off.


 Another contributing factor to the renting trend among the younger generation, is that they are holding off on starting families until later in their lives. This could be due to many of the factors we mentioned above: jobs, travel, relationships (or lack thereof). But the biggest contributing factor is most likely money. Millennials are loath to drop their bags, their money and start a family. There are so many other things that that money could be spent on that they are unlikely to drop it all to start a family and buy a home. Packaging all of these preferences and wants and needs into one leads to putting off purchasing a home until later in life. For most millennials, there’s no need for putting a hold on your travels, dropping tons of cash and purchasing a home, especially when we probably just dropped a ton of cash on college! The trend of renting has been growing for years and will probably continue into further generations due to a change in perspectives and values.


Posted July 31, 2015 by RentJungle
Image courtesy PixabayWhen you are in search of a new rental, location is always a key factor - whether you desire a location close to your work or one that is far from city life. Current trends suggest that one specific aspect of location is increasing in its importance - walkability. You may have checked websites like Walk Score to view a building's proximity to locations like grocery stores, transportation, restaurants, and the like; but a new study suggests that walkability could soon be a top deciding factor when it comes to choosing a new rental apartment or home.

The study, conducted by RealtyToday.com focuses on how various aspects of walkability are impacting today's real estate market. Perhaps, most importantly is the same mentality of Baby Boomers and Millennials to live without needing a car. While the boomers are downsizing, millennials do not want to have a lengthy commute to work. Fields where jobs are plentiful, such as medicine and technology, tend to be found in urban areas.

Due the economic crash in the early 2000s, many young people are skeptical of investing in home ownership, or just do not have the income to do so. Combine this with the fact that median home sales are at the highest rates in history, the younger generation is not inclined to buy.

What does this signal for property managers? Market your walkability. If millennials want to walk to both their jobs and their social events, rentals need to appeal to this. If you are a millennial currently searching for a rental the offers ideal walkability, a newly published study from The George Washington University School of Business ranks the most walkable metropolitan areas in the country. Washington D.C. topped the list, followed by New York City, Boston, San Francisco, Chicago and Seattle. These cities are categorized by the study as "High Walkable Urbanism."

If your ideal standard of living involves a high level of walkability, you certainly are not alone. As baby boomers come of retirement age and millennials continue to shift into the job market, property managers will need to being or continue development in urban areas where walkability rates are high.

 Image courtesy Pixabay


Posted July 16, 2015 by RentJungle
In today's market, choosing whether to rent or buy can be a difficult decision. There are many factors that come into play when choosing your new home.  Will you stay in the area, what is your financial status or how much room do you need are all factors that you think about when choosing whether to rent or buy. However, the trend that is continuing this year and throughout the past 10 years is to rent.
 
The Joint Center for Housing Studies at Harvard University has been gathering data about this trend for the past few years. 2014 is the 10th consecutive year for rental household growth. Harvard University has calculated that the rental household growth is increasing at an average of 900,000 renter households per year. This trend has stayed constant from 2010-2014.

Homeownership has feel nearly 64.5% in the past year. This significant decrease has wiped out all of the steady increase from the past two decades. This is the 10th consecutive year that the amount of homeowners in the United States has fallen. This trend seems to be continuing as the rental growth continues to increase at a steady rate.

Harvard also wanted to evaluate why the rental trend was increasing so much in the past few years. This increase is caused in part to the rental demand of younger adults. Adults 35 and over have contributed to 76% of renter household growth in the past few years. This means that the younger adult demographic makes up 60% of all renters in the United States.

All of these factors show a steady increase for the foreseeable future in multi family housing rentals. As millennials start to make their own future, they will contribute to be the largest percentage of the rental market. These findings will also be a huge factor in construction for the future. If the demand is still high, multi family units will continue to be built around the United States. This could cause a change in the rental market prices and demand as we see where the future takes us. You can learn more about the Harvard study by visiting FreddieMac.
 
Image From Wikimedia


Posted May 11, 2015 by RentJungle
HUDstudyAccording to data released by the U.S. department of Housing and Urban Development (HUD), the number of people with "severe housing problems" has declined between 2011 and 2013. What are the criteria of those with "severe housing problems?" According to the Washington Post, HUD categorizes those with these problems as people who:
"...make less than 50 percent of the area median income, spend more than half their income on rent and don't have any housing subsidies."
Many people were forced into the "severe" category during the economic recession, as a result of job loss and foreclosure. Currently, though, unemployment is at an all-time low for the first time since the recession began. Foreclosures have gone down and apartment construction and federal housing subsidies have both increased, which has eased some of the financial burdens on the nation's poor. According to HUD, citizens categorized with "worst case needs" dropped from 8.5 million in 2011 to 7.7 million in 2013.  While these numbers are encouraging, the amount of relief is minute compared to the overall state of the rental market.

Just because the national economy has experienced an upswing, the economic improvements have not assisted all types of renters. Elderly renters on a fixed income have not been affected by the increase in jobs, which has not relieved their financial burden of high-cost rent, and overall, the cost of rent is still way higher than it was before the recession began, with "worst case needs" up 49% compared to 2003.

Just one example of the nation's unaffordable rental market is a recent incident in New York City. A 33-story complex in Manhattan received a staggering 88,000 applications for its 55 affordable housing units. To qualify for these low-income units, applicants had to have made less than $50,304 per year for a family of four. The top rent for the affordable units in the complex costs $1,082 per month.

While the HUD study shows some relief has been felt, this is clearly the exception to the high-rent ruling market.


Posted March 31, 2015 by RentJungle
The multi family housing real estate sector has had a record breaking year.   The total investment volume in multi-family properties totaled $106 billion in 2014.  Multi-Family units are the only real estate sector to return to the sales levels of 2007.  This sector of real estate has been increasing in the past few years.  The Q4 numbers show a ten perfect increase from the 2013 Q4 Numbers.  The World Property Journal has more information about the latest property boom.

Based on the latest research from CBRE; propensity to rent, improving job economy and new development deliveries in the U.S. combined to drive the largest full-year multifamily investment total since 2007.

Total investment volume in U.S. multifamily properties totaled $106 billion in 2014, a 7 percent climb over the prior year and surpassing the prior peak of $105.1 billion set in 2007. Multifamily is the first property sector to return to 2007 sales levels with this milestone.

The year closed with a very active quarter for multifamily property investment, in terms of sales volume. In Q4 2014, U.S. multifamily sales volume reached $34.1 billion--10 percent higher than the year prior--setting a new quarterly investment record.

Investment in mid/high-rise property sales represented 37 percent of all acquisitions in 2014--based on dollar volume--and totaled $39 billion; up two-a-half percent from the prior year. Garden apartment investment rose 6.4% in 2014, to $67 billion. While acquisitions of mid-rise and high-rise properties will remain active, CBRE Research anticipates a modest shift toward garden product in the near term.

"Multifamily investment soared to new heights in 2014. The sector continues to show its resilience as a safe haven for global investors looking to make their way into the U.S. In 2015, we anticipate total investment volume to match or exceed 2014 levels as deployment of capital into real estate from new investor types, in particular, insurance groups from China and Taiwan, and Chinese property companies continues to accelerate," said Brian McAuliffe, Executive Managing Director, Institutional Properties, CBRE Capital Markets.

Aggressive pricing continues to reflect the large amount of capital attracted to the sector, as multifamily investors continue to have a favorable view of this asset class. The Q4 2014 average apartment sales price of $124,000 per unit reflected a 9.6 percent increase over the year prior. Mid/high-rise product recorded a year-over-year gain of 11.2 percent, to $235,000 per unit.

The downward pressure on cap rates also reflects the continued interest in the sector. For all types of apartment properties, cap rates averaged 6.1 percent in Q4 2014--down 10 basis points (bps) from the prior quarter.

Rental demand continued to surge in 2014, as more existing households shifted from owning to renting, and more newly formed households chose to rent apartments over purchasing single family homes. In 2014, 261,700 multifamily units were absorbed nationwide. New York City, Houston, Los Angeles, Dallas and Austin were the year's largest contributors to net absorption, each recording more than 10,000 units of positive net absorption.

"Market trends continue to reflect the multifamily sector's attractiveness for debt and equity capital as pricing metrics point to a sustained competitive environment for investment and higher pricing. GSEs such as Fannie Mae and Freddie Mac remain dominant in the multifamily lending world; life companies, banks and the CMBS market are also competitive sources of mortgage capital. The favorable health of the multifamily sector is also reflected in low and/or declining delinquency rates," said Peter Donovan, Senior Managing Director, Multifamily, CBRE Capital Markets.



Posted January 16, 2015 by RentJungle
Officials in Boston and New York City are beginning to crack down on a growing problem of overcrowded off-campus student housing. The main reason for the overcrowding is rent prices. Students are unable to afford rent by themselves, so they share apartments or rental houses with more people than the property is zoned for. National Real Estate Investor explains how Boston is handling the problem:

 Housing inspectors are starting to crack down on overcrowded student housing in college towns, starting with Boston and New York City.

 Officials in Boston have gathered the addresses of more than 25,000 college students from 31 colleges in the Boston metro area, according to a report last week in the Boston Globe. Using the list, officials have identified about 580 properties that have apartments occupied by more than five students crowded together. A 2008 zoning rule forbids more than four full-time, undergraduate students from sharing a single apartment.

 Enforcement may have a sharp effect on the balance between supply and demand for student housing in Boston. More than 45,000 students live off-campus in the metro area, according to the Globe, and many may soon have to find less-crowded housing. More overcrowded properties might be added to the city’s list. Officials are still trying to get the addresses for many students, but many of the addresses they do have don’t include apartment numbers. The extra information may reveal more overcrowding.

 Once officials confirm that an apartment is unsafe or overcrowded, they plan to work with students, landlords and the colleges to find safe, uncrowded places for the students to live, according to the Globe. Eventually, Boston’s housing inspectors plan to visit all of the roughly 150,000 rental apartments in the city to make sure they measure up to housing codes.

 For years, overcrowding has been a sort of unofficial housing policy for many of the least affordable cities in the United States. An average one-bedroom rental apartment is too expensive for a full-time minimum wage worker in all 50 states in the United States, according to an analysis of fair market rents by the National Low-Income Housing Coalition’s 2014 “Out of Reach” report. Many renters solve the problem by crowding in with roommates.

 The problem is especially acute for students. The Boston Globe drew Boston’s attention to its terrible student housing landlords with a “Spotlight” section report published in April 2013. The report exposed broken windows, malfunctioning fire detectors, rodents and overcrowding. A fire in 2013 killed Boston University student Binland Lee, who was trapped in an illegal attic apartment with only one way out.

 But Boston isn’t the only city that is cracking down on landlords with serious problems at their buildings.New York City's Alternative Enforcement program, which identifies the 200 worst buildings for violations, is also underway. The owners of those buildings have four months to fix the problems, and the city will make the repairs itself and charge the landlord.

 High demand for student housing

 Demand for student housing is still very high nationwide, on average. Occupancy rates averaged 96 percent, according to an analysis by Colliers of properties sold in the first half of 2014 near tier-one schools whose enrollment is more than 20,000. Developers are enthusiastically building new student housing properties in markets across the country, favoring sites within walking distance of campus, which are increasingly rare.

 Enrollment grew slightly at four-year colleges from 2012 to 2013, according to the latest data from the U.S. Census Bureau’s Current Population Survey, which was released in September. Four-year college enrollment grew while enrollment fell steeply by 10 percent at two-year colleges, driving overall college enrollment down by 463,000 between 2012 and 2013, marking the second year in a row that a drop of this magnitude has occurred. However, growth in enrollment at four-year colleges is the important factor for owners and managers of buildings located near tier-one schools.


Posted November 21, 2014 by RentJungle
("New Classroom" by Bart Everson is licensed under CC BY 2.0)If you are moving and have children, undoubtedly a factor of where you decide to live is the quality of the educational system versus the affordability of the school, or the overall cost of living in that area. RealtyTrac recently conducted a study of 25,000 elementary schools in 7,500 zip codes, taking into account test scores, home price and unemployment rates. Here are the results: Markets with Good Schools and Affordable Homes There were 489 zip codes with elementary schools  where 2013 test scores were at least one-third higher than their respective state  average and where the average price of a residential property required  one-third or less of the median household income. These zip codes also had a  maximum unemployment rate of 5.9 percent in September.Cities with the most affordable zip codes with  good schools were led by Orlando, Fla., (9), Raleigh, N.C. (8), Phoenix, Ariz.,  (6), followed by five cities each with five affordable zip codes with good  schools: Chandler, Ariz., Colorado Springs, Colo., Grand Rapids, Mich.,  Lexington, Ky., and Wilmington, N.C.States with the most affordable zip codes with  good schools were New York (105), North Carolina (66), Florida (62), Illinois  (50), and Michigan (40).The average test score for the best elementary  schools in these 359 zip codes was 49 percent higher than their state average. Markets with Good Schools and Unaffordable Homes There were 127 zip codes with elementary schools  where 2013 test scores were at least one-third higher than the state average  and where the average price of a residential property required two-thirds or  more of the median household income. These zip codes also had a maximum  unemployment rate of 5.9 percent in September. Cities with the most unaffordable zip codes with  good schools were New York, N.Y. (22), San Francisco, Calif., (8), Flushing,  N.Y., (4), Newport Beach, Calif., (4) Oakland, Calif., (4),  San Jose, Calif., (4), and Portland, Ore.,  (3). States with the most unaffordable zip codes with  good schools were California (69) and New York (44). No other states had more  than three unaffordable zip codes with good schools. The average test score in these 91 zip codes was  60 percent higher than their state average.


Posted July 09, 2014 by RentJungle

A new report from RealtyTrac was recently published detailing the effects of rising home prices on investor returns for rental properties. Interested to see which cities have the best annual ROI rates? Check the list towards the end of the article!

 

RealtyTrac has published its latest report on rental rates in the broader U.S. market, and while there are some trends that speculative investors may find troubling, the rental real estate market is still providing quite healthy returns in most metro areas.  The Q2 2014 U.S. Residential Rental Property report covers 370 U.S. counties that represent approximately 186 million U.S. residents - making it one of the most often used reports to gauge the overall health and geographic trends in the U.S. rental property market.

 

A continued trend of rising prices for new and existing homes has put a slight drag on the potential for investor returns, with current nationwide average annual yields hovering around 9.97 percent, down from 10.6 percent a year ago.  For those investors who already have an established portfolio of rental properties, the nearly 10% annual yield is respectable, and the 7% rise in the median price for existing homes provide additional comfort.

 

Part of the larger trend is due to the relative scarcity of new apartment construction projects, which is leading to a shortage in supply of available rental units.  New and more restrictive mortgage qualification guidelines are resulting in the disqualification of many first time homebuyers, which places an additional demand on the rental market for housing.

 

Investors who have made it a practice to monitor demographic patterns and geographic shifts in the rental market should continue to enjoy higher than average annual returns.  The two main demographic groups that real estate investors should be focusing on are the baby boomers and the millennials; both of which are going through transitionary life stages where decisions to rent are often advantageous.  Together, these two demographic groups account for more than 60 percent of the U.S. adult population.

 

Location is always an important factor in buying, renting, or investing in real estate.  For the investor, areas with vibrant economies and low unemployment signify great potential.  Quite naturally, yields in these areas were high in the Q2 report, with Anderson, SC topping the list with an average annual return of 15.33 percent.  The top 10 areas for those looking to buy rental property are:

1. Anderson, SC 15.33%

2. Woodbury Cty, IA 13.02%

3. Pickens Cty, SC 13.00%

4. Alachua Cty, FL 12.02%

5. Spotsylvania Cty, VA 11.86%

6. Lexington Cty, SC 11.26%

7. Allegheny Cty, PA 11.25%

8. Franklin Cty, OH 9.97%

9. Dorchester Cty, SC 9.95%

10. Douglas Cty, NE 9.93%

 

Check out the RealtyTrac report for further insights into the hottest markets for the baby boom generation and for millennials: http://www.realtytrac.com/content/foreclosure-market-report/q2-2014-us-residential-property-rental-report-8102



Posted November 13, 2013 by RentJungle
The second quarter of 2013 has seen a rise in apartment and condominium production according to the National Association of Home Builders (NAHB):

Production of apartments and condominiums gained momentum in the second quarter of 2013, according to the latest Multifamily Production Index (MPI), released today by the National Association of Home Builders (NAHB). The index increased nine points to 61, which is the highest reading since its inception in 2003.

The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale" units, or condominiums. In the second quarter of 2013, the MPI component tracking builder and developer perceptions of market-rate rental properties rose six points to 67, the 11th straight quarter above 50; for-sale units had a significant increase of 16 points to 58, which is the highest reading since the second quarter of 2005; and low-rent units increased five points to 60.

“Multifamily developer confidence is currently at an all-time high according to our survey results, and we expect to see that continue for the foreseeable future,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.”

Read More



Posted October 30, 2013 by RentJungle

According to a recent NMHC survey, the apartment market has dipped some in the third quarter:

All four indexes of the National Multi Housing Council’s (NMHC) October Survey of Apartment Market Conditions dipped below 50 for the first time since July 2009. Market Tightness (46), Sales Volume (46), Equity Financing (39) and Debt Financing (41) all indicated declining conditions from the previous quarter.
“After four years of almost continuous improvement across all indicators, apartment markets have taken a small step back,” said Mark Obrinsky, NMHC’s Vice President of Research and Chief Economist. “Conditions cannot continue to improve indefinitely and new development is at least somewhat constrained by available capital—though more on the equity than the debt side. Even so, both the Market Tightness and Sales Volume Index are within hailing distance of the breakeven level and the Debt Financing Index rose despite some rise in interest rates. This bodes well for the apartment industry going forward.”

Read More



Posted August 14, 2013 by RentJungle

Apartment prices continue to increase. Price per unit of apartments in the first quarter was $147,257—increasing from $110,380 in the fourth quarter, according to PPR/Costar. However, fewer properties were transacted—2,193—compared to 3,556 in the fourth quarter.

Apartment completions in the top 30 metros more than doubled in the first quarter compared to a year ago, according to data from Marcus & Millichap Research Services. Apartment rents increased by 3.1 percent to $1,156 nationally in the first quarter, while apartment vacancies held steady at 5.1 percent for these metro markets.

Meanwhile, multifamily permits reached their highest monthly reading since late 2007, according to the National Association of Home Builders (NAHB). Permits in April skyrocketed to a seasonally adjusted annual rate of 374,000 units, or 55 percent higher than in the same period last year.

Click to Read More

 



Posted June 15, 2013 by RentJungle

Bank lending increased across the board for multifamily properties, income-producing commercial real estate, and owner-occupied commercial real estate, according to Chandan Economics. And the recovery in large and mid-tier banks’ commercial property balance sheets continued into the third quarter, stated Sam Chandan, chief economist.

Apartment equity REITs showed a compound annual increase of 1.30 percent for one year, and 9.67 percent for five years, according to National Association of Real Estate Investment Trusts.

Housing starts for buildings with five or more apartments came in at a seasonally adjusted annual rate of 285,000 units in February 2013. This represented a 1 percent gain versus January, stated the National Association of Home Builders (NAHB). Overall, the recent permit numbers have been strong enough to support a five-plus starts rate in range of 285,000 over the next couple of months, said NAHB.

Prices for building materials used in residential construction have accelerated in recent months, said NAHB. Price pressures have not occurred evenly across the board, but instead have been driven largely by strong increases within a handful of building material categories.

Click to Read More



Posted April 11, 2013 by RentJungle

Apartment total returns increased in the fourth quarter of 2012 from 2.43 to 2.81 percent, according to data from the National Council of Real Estate Investment Fiduciaries (NCREIF).

The Mortgage Bankers Association (MBA) total multifamily financing volume index increased by 49 percent in the fourth quarter 2012 compared to the same period a year ago.

Multifamily starts, for five-plus unit buildings, is up 115 percent in December 2012 on a year-over-year basis, according to the National Association of Home Builders (NAHB). “Overall, the December permit numbers were strong enough to indicate that the five-plus starts rate is likely to remain relatively healthy in the short run, although a rate as high as 330,000 may be a little too much to sustain,” stated NAHB.

Asphalt, gypsum products, plywood and oriented strand board posted double-digit price gains in December, compared to the year before. Core CPI rose by a relatively benign 1.9 percent for 2012, and the annual average for 2012 was 2.2 percent above its 2011 level.

Click to Read More



Posted March 21, 2013 by RentJungle

Over the past five years, according to Wall Street analysts' estimates, between $7 billion and $9 billion worth of distressed single-family homes have been purchased and converted to rentals by institutional investors — hedge funds, private partnerships of high net-worth individuals and even pools of capital raised among investors in foreign countries.

Unlike traditional "mom and pop" rental home investors, these funds have been scooping up dozens, sometimes hundreds, of properties at a time through all-cash purchases of foreclosures, short sales and bulk packages. Some of the bulk acquisitions have come from the troubled-asset portfolios of financing giants Fannie Mae and Freddie Mac, others from banks that have taken over homes left by defaulters.

Though single-family rental homes have long been a part of the American housing scene, the involvement of large-scale institutional investors is causing the category to explode. According to a new study conducted by pollster ORC International for Premier Property Management Group, a company that works with investors, roughly 52 percent of all rental units in the country are now single-family homes and house 27 percent of all renters.

Recent Census Bureau data cited in the study indicate that the number of single-family rentals grew by 21 percent between 2005 and 2010 — from the top of the boom through the depths of the bust and foreclosure crisis — compared with a 4 percent increase in total housing units.

Click to Read More



Posted January 03, 2013 by RentJungle

The US apartment market, that has been feeling its oats for a couple of years, also had a great November, according to an apartment market report released by Real Capital Analytics last week.

Sales of apartment properties worth $2.5 million or more totaled $5.5 billion in November, up 19% year-over-year. Sales of garden properties totaled $3.5 billion, up 14% year-over-year, while sales of mid/high-rise properties totaled $2 billion, up 31% year-over-year. But the deal that, perhaps, made the biggest splash at the end of 2012, was announced in early December--the impending $16 billion purchase, including the assumption of $9.5 billion in debt, of Archstone Enterprise, that is scheduled to close sometime in the first quarter 2013.   

Almost a year ago, Equity Residential, a public REIT, contacted AvalonBay Communities, another public REIT, to become the minority partner in the Archstone deal. Together, they have split up Archstone's portfolio of more than 45,000 rental apartments as well as its development and land sites. AvalonBay is slated to buy 40% of Archstone, while Equity Residential will buy the rest.       

But back in November, portfolio transactions contributed $1.7 billion to the total dollar volume of apartment property sales, with the largest deal being the $800 million plus acquisition, by American Campus Communities, Inc., of a portfolio of 19 student housing properties from affiliates of Kayne Anderson Capital Advisors, L.P.

Click to Read More



Posted March 12, 2012 by RentJungle

"Now, after painfully maneuvering through the ruins of what the bubble burst left behind — the flood of short sale and foreclosure properties into the market driving home values to a steep decline  — we have come to a place where many real estate experts and financial advisers, like Warren Buffett, feel that it is not only safe to invest in real estate as a financial asset again, it’s the top choice for making the most out of the declining value of our U.S dollar.

Warren Buffett, lauded as one of the most respected, successful investors in the world, told CNBC in February that if he were a young investor, with a choice of investing in the stock market or buying his first home, he would select buying a home as the wisest choice.

Timing the real estate market successfully pertains to monitoring and interpreting the changes affecting the market — in both directions — on the downside and on the upswing when the market shows signs of recovery. Knowing when to buy at the low and when to sell at the high, and having a plan for how to manage your financial assets in between those two extremes, has always been the savvy investors’ key to building and holding on to wealth."

Click to Read More



Posted January 10, 2012 by RentJungle

"U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, allowing for rent increases that are likely to continue this year,Reis Inc. (REIS) said.

The vacancy rate fell to 5.2 percent, the lowest since the end of 2001, the New York-based property research firm said in a report today. It was 5.6 percent in the previous three months and 6.6 percent a year earlier. The average monthly effective rent, or what tenants paid after landlord giveaways, climbed 2.3 percent from a year earlier to $1,009, Reis said."

Click to Read More



Posted May 13, 2011 by RentJungle

"A National Association of Home Builders webinar, "Consumer Preferences for a New Generation of Renters," identified trends apartment owners and builders should be attuned to. Here's what to know, says Jack Kern of Kern Investment Research, Washington, D.C., and Mark Humphreys of Humphreys and Partners Architects, Dallas..."

Click here to read more.



Posted October 26, 2010 by RentJungle

During the third quarter of 2010, the average rent for an apartment in the United States increased by 5% from the prior quarter to $1,356 according to our analysis. Our detailed reports of rent trends by city are available by clicking here.

"We are seeing some encouraging signs in the overall national rental market for the second quarter in a row," says Rentjungle.com CEO Jon Pastor. "In the third quarter, rent nationwide was up by 5% when compared to the second quarter of 2010, which is the continuation of an improvement trend that started in January. Rent in Q4, 2009 was down by approximately 3% from the prior quarter, and during Q1 2010, rent was flat. Rent increased in Q2 by 2.5%, making Q3, the second continuous quarter of increases."

Nationwide, one bedroom apartments saw the largest percentage increase in Q3, up 7% to $1,034 per month. Two bedroom apartments were also in demand, up 5% to $1,284 per month.

Across all apartment sizes, Washington DC, Denver, and Miami all saw rent increases above 6% in the second quarter. The majority of cities realized increases in the 2 to 5% range. However, Des Moines, Detroit, Dallas and Cleveland all saw decreases in excess of 1%.

"Even with the real estate market continuing to sputter with the expiration of the homebuyer tax credit, rents remained strong" said Rent Jungle co-founder Geng Wang. "We may be seeing a more permanent shift away from owning to renting. As consumers get confidence back, and move out of shared livings spaces (e.g., with roommates or parents), they are opting to continue to rent rather than looking at purchasing."

Rentjungle.com calculates these figures by analyzing over 1 million apartment ads a month. The goal of the site is to help users make more informed decisions. More rent trend data, including breakdowns by city, is available at: http://www.rentjungle.com/rentdata/ . Rents are calculated using a 10 mile radius from the center of the city.



Posted July 06, 2010 by RentJungle

During the second quarter of 2010, the average rent for an apartment in the United States increased by $27 to $1,087, an increase of 2.5%.

"We are seeing some encouraging signs in the overall national rental market," says Rentjungle.com CEO Jon Pastor. "In the second quarter, rent nationwide was up by 2.5% when compared to the first quarter of 2010, which is the continuation of an improvement trend that started in January. Rent in Q4, 2009 was down by approximately 3% from the prior quarter, and during Q1 2010, rent was flat. So an increase of 2.5% in Q2, 2010 is significant."

Two bedroom apartments saw the largest percentage increase in Q2, up 2% to $1,222 per month. One bedroom apartments were also in demand, up 1% to $970 per month.

Across all apartment sizes, San Diego, San Jose, Norfolk, Providence, Hartford and New Haven all saw rent increases above 4% in the second quarter. The majority of cities realized increases in the 1 to 3% range. Tampa, Tulsa, Hollywood and Indianapolis however, all saw decreases in excess of 1%.

"The rental market appears to have bottomed out in the last quarter of 2009," said Rent Jungle co-founder Rick Ferris. "This is the first quarter that we have seen significant strength in the two bedroom market, indicating that larger apartments may be coming back in demand as the economy turns. It will be interesting to see if decreases in overall consumer confidence that were reported in June reverse this strong trend heading into the remainder of the summer."

Rentjungle.com calculates these figures by analyzing over 1 million apartment ads a month. The goal of the site is to help users make more informed decisions.

Rentjungle.com is the most comprehensive rental listing site on the web. It works much like other search engines in that it scours the Internet to amass apartment listings from a variety of sites.  Rentjungle.com employs innovative spidering technology that can detect both when new rentals come on the market and when rents for a particular property change. All of this data is analyzed and stored in order to keep users abreast of the latest happenings in the rental market. Trends can be tracked by city and by neighborhood, furthering the site's value to users. Users can see searches on an easy, interactive map that links to satellite street views.



Posted April 07, 2010 by RentJungle

During the first quarter of 2010, the average rent for an apartment in the United States has remained flat at $1,020 according to Rent Jungle, an apartment search and market research website.

"We are seeing some encouraging signs in the overall national rental market," says Rentjungle.com CEO Jon Pastor. "In the first quarter, rent nationwide was flat when compared to the fourth quarter of 2009, which is a reversal in a negative trend. Rent in Q4, 2009 was down by approximately 3% from the prior quarter, so a flattening in Q1, 2010 is an improvement."

Studio apartments saw the largest percentage increase in Q1, up 2% to $758 per month. One bedroom apartments were also in demand, up 1% to $959 per month. Larger apartments were generally flat to slightly decreasing in price.

Across all apartment sizes, Honolulu, Tulsa, Miami, Pittsburgh, Fort Worth, Dallas, and Boston all saw rent increases above 3% in the first quarter. The majority of cities were unchanged. Nashville, Fresno, Memphis, San Francisco, St. Paul, and Minneapolis however, all saw decreases in excess of 2%.

"Trends in the apartment market appear to be following overall trends in consumer confidence," said Rent Jungle co-founder Rick Ferris. "Renters who may have taken on roommates last year appear to be heading out on their own. They are starting with smaller apartments, as evidenced by the rent increase for studios and 1 bedrooms."

Rentjungle.com calculates these figures by analyzing over 1 million apartment ads a month. The goal of the site is to help users make more informed decisions. More rent trend data, including breakdowns by city, is available using the drop-down menu in the upper left of this page.



Posted March 16, 2010 by RentJungle

The National Association of Home Builders Multifamily Housing Market Index , released on 3/11/2010, continued to show weakening market conditions in Q4 2009.

  • Apartment managers (by a 2 to 1 margin) see vacancy rates increasing
  • Measures of interest from potential renters (calls and foot traffic) are also predicted by apartment managers to decrease
  • The number of managers that feel rents will continue to decrease has held steady from Q3 2009 at slightly more than half of those surveyed

See full data table here.



Posted March 15, 2010 by RentJungle

The last few months of 2009 were great for apartment hunters. Rents were down significantly from prior quarters. Will that repeat itself this year? Average rent data through September indicate that it will not for most cities. However, some deals can still be found depending on the geography.

The first chart below shows the average nationwide rent for all apartment sizes is on an upward trend. Which was not the case last year. Q3 2010 was up by ~4% over Q3 2009. You can see, based on the trend, that Q4 is unlikely to show a major discounts for renters.

The second chart below (use the scroll bar on the right of the chart to see more cities), shows how rents have changed year-over-year for major cities. The city-by-city data make the story a bit more nuanced. Many cities, particularly in the Northeast, have seen significant rent increases over the past year. Cities in the South and Midwest that were hit particularly hard by the financial crisis (such as Phoenix and Detroit) are still experiencing declining rents.

If you would like more data on your particular geography, you can:

Summary Dashboard
Summary Dashboard
Powered by Tableau

RentJungle.com calculates these figures by analyzing over 1 million apartment ads a month. We spider the internet, much like Google, to gather apartment listings from where ever they appear. The goal of the site is to help users make more informed decisions. More rent trend data, including breakdowns by city, is available here: Average Rent By US City . Rents are calculated using a 10 mile radius from the center of the city.



Posted February 25, 2010 by RentJungle

Over the last 6 months, the average rent for an apartment had decreased by $40 to an average of $961 per month, a decrease of ~4%.

Wichita, Indianapolis, Miami all saw rent increases above 2%. The majority of cities, however, are still flat or decreasing. Oklahoma City, New York, Albuquerque, Portland, Louisville, Los Angeles, Dallas, Phoenix, Denver, and Nashville all posted declines from 7% to 9%.

"Despite these decreases, we are seeing some encouraging signs in the rental market," says Rentjungle.com CEO Jon Pastor. "Looking at just January this year, rent nationwide is up 1% over December, which is a reversal in the overall 6 month trend."

The following shows the price changes for the largest cities in the survey:

City Jul-Aug Rent Dec-Jan Rent % Change $ Change
Wichita5485643%16
Indianapolis7267453%19
Miami1,5031,5402%37
Memphis8038081%5
Pittsburgh7777800%3
Cleveland7537550%2
Tulsa5325320%0
San Antonio747736-1%-10
St. Louis805792-2%-13
Tampa930914-2%-16
Houston1,009989-2%-20
Bakersfield716699-2%-17
San Jose1,4941,458-2%-37
Columbus775754-3%-21
Austin921896-3%-25
Boston1,9731,915-3%-58
El Paso557538-3%-19
Honolulu1,5911,534-4%-57
Raleigh845814-4%-31
Baltimore1,1041,064-4%-40
Detroit849817-4%-32
Anaheim1,4541,398-4%-56
Colorado Springs769737-4%-32
Washington1,6471,575-4%-72
Tucson769733-5%-36
Las Vegas958913-5%-45
Atlanta942897-5%-45
Cincinnati779741-5%-37
Chicago1,5331,455-5%-79
Philadelphia1,1481,089-5%-59
Milwaukee848803-5%-44
Jacksonville734695-5%-38
Omaha760719-5%-40
Aurora999944-5%-54
Charlotte900850-6%-50
Kansas City806758-6%-49
Mesa925868-6%-57
Sacramento1,015949-6%-65
Oklahoma City730681-7%-49
New York2,3982,223-7%-175
Albuquerque857795-7%-63
Portland1,028953-7%-76
Louisville729674-8%-56
Los Angeles1,6671,539-8%-128
Dallas1,1761,082-8%-94
Phoenix875804-8%-71
Denver1,033944-9%-89
Nashville987900-9%-88

Rentjungle.com calculates these figures by analyzing over 1 million apartment ads a month. The goal of the site is to help users make more informed decisions.

"Difficulties in the real estate market didn't push as many people into apartments as the industry would have expected," says Rentjungle.com founder Rick Ferris. "Increases in families renting instead of buying were offset by existing renters taking on roommates or moving back with parents."

ABOUT RENTJUNGLE

Rentjungle.com, is the most comprehensive rental listing site on the web. It works much like other search engines in that it scours the Internet to amass apartment listings from a variety of sites. Rentjungle.com employs innovate spidering technology that can detect both when new rentals come on the market and when rents for a particular property change. All of this data is analyzed and stored in order to keep users abreast of the latest happenings in the rental market. Trends can be tracked by city and by neighborhood, furthering the site's value to users. Users can see searches on an easy, interactive map that links to satellite street views.



Posted September 25, 2009 by RentJungle

July to September saw a significant increase in rent of greater than 2% in Louisville (4.1%) and Anchorage (2.6%). Overall, six major cities saw a rent increase of 1% or greater:

Rent increase from July to September, 2009
Percent

average rent price increase by city

Rank City July August September 3 Month Change
1Louisville7297567594.1%
2Anchorage1,2021,2131,2332.6%
3Detroit8508628651.7%
4Orlando9309509441.5%
5Nashville1,0091,0031,0231.4%
6Chicago1,5971,5921,6141.0%
7Kansas City8198178250.7%
8Miami1,5101,5051,5130.3%
9Omaha7727767730.2%
10Salt Lake City9499369510.2%

Rent decreases were more prevalent across the board with all of the top 10 reporting rent decreases greater than 3%. 4 markets show rent decreases greater than 5%: Boston (10%), Tucson (7.2%), New Orleans (5.4%), Phoenix (5.3%), Albuquerque (4.7%):

Rent decreases from July to September, 2009
Percent

average rent price decreases by city

Rank City July August September 3 Month Change
1Boston2,0151,9741,812-10.0%
2Tucson777749721-7.2%
3New Orleans1,1271,0771,066-5.4%
4Phoenix897872850-5.3%
5Albuquerque865859824-4.7%
6Milwaukee874849834-4.5%
7San Diego1,5381,4821,477-4.0%
8Charlotte947919911-3.9%
9Hartford997972963-3.4%
10Honolulu1,6051,5491,550-3.4%


Posted September 25, 2009 by RentJungle

Overall apartment rents have remained relatively stable nationwide in the July to September 2009 period. Only studio apartments have shown some upwards movement at 4.5% from $747 per month to $781 per month.

Average Nationwide Apartment Rent By Number of Bedrooms
$'s per month - July to September, 2009

Beds July August September 3 Month Change
Studio7477597814.5%
11,0019621,0070.6%
21,3051,2381,299-0.4%
31,5891,5141,575-0.9%
42,0991,9902,052-2.2%


Beware of rental ad scams: Rent Jungle is a rental search engine for apartment hunters and is not responsible for the content of rental listings found on the site. Rent Jungle encourages you to use common sense while apartment hunting. Beware of fraudulent listings. Click here to learn about common scams.