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Even before the pandemic, rents weren’t expected to rise this high

August 26, 2021

Rent prices were 9% higher in July than at the same time last year, evidence of a rental market recovery in full swing


The nation’s rent prices had already surpassed pre-pandemic expectations, but now they’re leaving them in the dust.

The typical rent in the U.S. rose to $1,843 in July, a level $52 higher than Zillow estimates it would have been if the pandemic had never happened, the company said Thursday in a new report.

Rents were up 9 percent year over year, a reflection of how far the market has come in its recovery nationwide.

“With the economy continuing to reopen, employees receiving more long-term guidance on remote work, and as students find their way back to college campuses, the rental market is picking back up,” Zillow Economic Data Analyst Nicole Bachaud said in the report. “As high demand puts pressure on rents and incomes are unable to keep up, affordability will become more of a challenge in the coming months.”

Even the big-city rental markets hit hardest by the pandemic — including New York and San Francisco — saw rents rise year over year. No major metro remained behind its rent levels from July 2020, Zillow said.

Despite these gains, inventory remained down 28 percent year over year, fueling further growth in home prices as they climbed to new all-time highs.

The typical home value rose to $298,933 in July, a 2 percent increase from the previous month. Values were up nearly 17 percent year over year.


Source Inman

Written by Daniel Houston

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