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According to a new report from HotPads, renters in the United States spent a total of $504 billion in rent this year, an increase of $12.6 billion, or 2.6 percent, from 2017, despite there being fewer renter households in 2018. The current median rent for the nation is $1,475, a 3 percent increase from last year.
The report shows that there were about 43.2 million households renting in the United States, slightly less than the number in 2017 by nearly 100,000. The decrease in renters might be due to an increase in eligible homebuyers.
A slowdown in rent appreciation has allowed some renters to save enough money for a downpayment, and Millennials, who make up half of today’s renters, are also buying homes more than other generations.
However, even though more Millennials are able to finance a home, rent prices still remain an issue as costs continue to soar. Expert opinion predicts that more eligible homebuyers might opt to continue renting if interest rates continue in 2019.
The New York City metro area, one of the most expensive areas to live, comprised 10 percent of all rent collected in the United States, at about $55.6 billion. Rent prices, however, are rising only 1 percent annually with rent growth slowing this year.
Unlike the metro areas, where rent appreciation has been fairly steady, markets in the Southeast and Southwest are seeing gains in rent prices. For instance, rents are appreciating at more than twice the rate of the national median in Orlando,FL, Las Vegas, NV, and Phoenix, AZ.
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