If you want to know why people are still looking to buy despite record setting home prices just look at the latest Zumper national Home Report…(Zumper)
- The median one-bedroom rental price now sits at $1,352, a 10.7% jump from March 2020 and was a new record high.
- The median two-bedroom rental price now sits at $1,663. This a whopping 13.1% above the March 2020 level and was a new record high.
NOTE: One-bedrooms has reached a new all-time high in every month of 2021 except April, and two-bedrooms have hit a new all-time high in every month since February.
Zumper cites two reasons for the spiking rents in 2021…
- The hot housing market is pushing prices up so high that people who are at the stage in their life where they’d usually buy a home are priced out or exhausted with the process.
- A number of big cities that saw precipitous rent drops are now seeing rent prices snap back and then some. For example, “New York City’s median one-bedroom rent dropped by 17.6 percent between March 2020 and January 2021, but is now up 3.5 percent relative to March 2020.
NUMBER #1: Like home prices, Phoenix leads the way when it comes to rental prices. Scottsdale’s one-bedroom median rent rose to $1,850 in September. That’s a 5.1 percent gain compared to August, and it’s up 23.3 percent relative to last year.