Rent hikes are back

Stimulus payments and recovering economy allowed landlords to raise prices in March

National /
Apr.April 26, 2021 10:00 AM
Stimulus payments, the vaccine rollout, low inventory of homes for sale and the recovering economy likely contributed to landlords accelerating the pace of rent increases last month. (iStock)

Stimulus payments, the vaccine rollout, low inventory of homes for sale and the recovering economy likely contributed to landlords accelerating the pace of rent increases last month. (iStock)

The pandemic did not stop rents from increasing, but it steadily slowed that increase to almost nothing. However, the trend ended last month, according to a new report.

In March, year-over-year rent growth was 1.1 percent, the Wall Street Journal reported, citing an analysis by Realtor.com. It had fallen from 2.2 percent last June to 0.6 percent in February.

Stimulus payments, the vaccine rollout, low inventory of homes for sale and the recovering economy likely contributed to landlords accelerating the pace of rent increases last month.

Median asking rent was $1,463 a month in the nation’s 50 largest markets, the report found. Annual rent growth remains far below the 3.2 percent recorded in March 2020, when the pandemic hit the U.S.

Rents fell by double-digit percentages during the pandemic’s first year in the nation’s most expensive cities, New York and San Francisco, and landlords increasingly offered concessions to fill apartments — sometimes to no avail.

“For a certain time, it seemed like it didn’t matter what you gave [in terms of concessions], the demand just wasn’t there,” Robert Nelson, a New York apartment landlord, told the Journal. But the number of new leases is picking up this spring, he said.

The hot housing market is also fueling the rent hikes as many prospective homebuyers are priced out of buying. In March, the median home sale price hit an all-time high of $329,100, up 17.2 percent from a year ago, according to the National Association of Realtors.

“It’s creating opportunities on the rental side,” Greenwich real-estate developer Eric Schwartz told the outlet. His new 59-apartment complex in the wealthy Connecticut town has received more than 500 inquiries, he said.

[WSJ] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    Nestio's Caren Maio (Credit: Emily Assiran)
    “Like TurboTax”: Nestio launches online leasing
    “Like TurboTax”: Nestio launches online leasing
    (Credit: iStock)
    What you need to know about landlords’ challenge to New York’s rent law
    What you need to know about landlords’ challenge to New York’s rent law
    Among Brooklyn's priciest spots is DUMBO; pictured is the neighborhood's Main Street Park (Credit: iStock)
    Why fewer Brooklyn and Queens tenants are moving
    Why fewer Brooklyn and Queens tenants are moving
    The Colorado Fire burns down toward the Bixby Bridge in Big Sur, California, early Saturday morning. (Photo by Karl Mondon/MediaNews Group/The Mercury News via Getty Images)
    Wildfire near Big Sur sends hundreds fleeing
    Wildfire near Big Sur sends hundreds fleeing
    New York Ranger Jacob Trouba (Getty)
    Rangers’ star Jacob Trouba nets Tribeca condo for $6.7M
    Rangers’ star Jacob Trouba nets Tribeca condo for $6.7M
    Chrissy Teigen and John Legend with 374 Broome Street (Credit: Karwai Tang/Getty Images; Google Maps)
    John Legend and Chrissy Teigen selling penthouse apartments in Nolita
    John Legend and Chrissy Teigen selling penthouse apartments in Nolita
    Michael Fulfree and Bianca D’Alessio of Nest Seekers International (Nest Seekers)
    They can sell the Hamptons. But can they sell “Selling the Hamptons”?
    They can sell the Hamptons. But can they sell “Selling the Hamptons”?
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    Tax assessments rise 9%, signaling higher bills for landlords
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...