April 25, 2016
The rental market in Gainesville is strong, and with an ever-increasing demand, rental prices are driving up. March was a strong month not only in Gainesville, but across the United States. However, while rental prices are still showing annual increases, the steep jumps they made over the past two years seem to be leveling out.
Zillow, a trusted real estate firm and information hub, reported on Friday that the median U.S. monthly rent rose “a seasonally adjusted 2.6 percent” last month from the previous year to $1,389. The national year-over-year increase in February was close behind with a 2.5 percent increase.
Overall, even though rental prices were higher last month, the surge in prices have moderated in much of the country. Prices ticked up only slightly in March in major metropolitan areas, including Los Angeles, Phoenix, Boston and Portland, Oregon. Rental prices fell, however, in Cleveland, Memphis and Oklahoma City.
2015 as well as 2014 saw sharp increases in rent prices, and while recently there has been a continued rise in rental prices, the increase has not been nearly as steep in the last quarter of 2015 or the first quarter of this year as it was for the previous two years. Part of the reason for this is that construction on new apartments has been booming as developers are trying to keep up with demand. The increased supply and inventory keep rental prices from making steep jumps. Now that price growth has slowed a bit, builders are going to likely be slowing down construction efforts, as well.
Demand for rentals continues to be strong as many millenials have not saved enoughmonry to buy a home, thus delaying home ownership and contributing to the rental market.
For more details and information, read the full article at staugustine.com.
