Rent prices keep rising — especially on lower-end properties

Aly J. Yale
The Mortgage Reports contributor

Where rent prices are getting out of hand

The rising rent problem isn’t getting any better. Rents rose 3 percent over the year in July, with low-end properties seeing the biggest jumps. Rent prices in Orlando, in particular, have skyrocketed in the last year.

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Surging rents in the South

The South isn’t seeing any relief from the market’s ever-rising rents, according to new data from CoreLogic. In fact, the top five metros for rent gains last month were all in the Southern region.

Orlando, which took the top spot, has experienced the highest year-over-year jump in rents, with prices rising 6.4 percent over July 2017. Las Vegas came in second with a 5.7 percent increase, while Tuscon took third at 4.4 percent. Houston and Atlanta rounded out the top five.

Average rents hit an all-time high — even in small towns

What’s worse is that it’s not increased rents on high-cost luxury properties that are driving the trends. Instead, it’s rising prices on lower-end properties, which have increased almost 4 percent over the year. High-end properties only saw rent prices rise 2.7 percent for the same period.

The cities where rents have jumped the most

The hurricane effect

In areas affected by last week’s Hurricane Florence, Molly Boesel, CoreLogic’s principal economist, said there could be more rent increases to come.

“Single-family rents were quick to respond to the late-summer hurricanes in 2017 with increased rental demand showing up in higher rents in just one-two months after the disasters,” Boesel said. “Similar movements in rents could be seen in metro areas affected by Hurricane Florence in the following months.”

Houston’s rents jumped 3.8 percent after Hurricane Harvey hit last year.

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Get today’s mortgage rates

Looking to get out of the rent race and avoid those rising costs? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (Dec 4th, 2021)