This Utah city has the highest rental rates in the nation

SALT LAKE CITY (ABC4) – Patrons trying to buy a house in Utah know the true property market has been rising steadily over the previous few years.

However that continued surge in actual property prices has additionally affected renters in lots of cities throughout the nation.

In a examine by Stessa, researchers took a more in-depth look into the present U.S. rental market. The report sought to search out the cities with the very best improve in common lease all through the nation.

The examine checked out knowledge from the U.S. Division of Housing and City Growth and the U.S. Census Bureau. To search out the cities with the very best lease will increase, researchers calculated the proportion change in median lease from 2019 to 2022. 

Salt Lake Metropolis noticed the third-highest improve in rental charges, skyrocketing 24.8% with a mean fee of $1,475, a pointy rise from $1,189 in 2019.

The Prime 10 U.S. cities with the very best lease will increase from 2019-2022 are:

The examine discovered no section of the rental market was excluded from rising charges — from studios and multi-bedroom flats together with rental houses.

Information reveals models of all sizes noticed costs improve by over 10% for the typical unit between 2019 and 2022.

The western U.S. states with the best lease will increase are Nevada (26.0%), Idaho (24.1%), and Utah (22.2%). States within the southern and central areas noticed will increase as effectively, although they had been typically decrease.

“These states have skilled excessive inhabitants development in recent times, bolstered partly by employees leaving higher-cost states like California and Washington in the hunt for extra inexpensive markets, however who’ve elevated prices of their new places within the course of,” the examine finds.

Consultants say a large number of things contributed to the stark uptick. Because the U.S. economic system rebounds from the COVID-19 pandemic, homebuyers and renters are confronted with obstacles reminiscent of inflation hitting a report 40-year excessive together with skyrocketing dwelling costs and rising mortgage charges which have additionally hit a ten-year excessive in April.

“The spike in dwelling values and now rising rates of interest are placing homeownership additional out of attain for a lot of would-be consumers, conserving extra individuals within the rental market,” researchers say.

For these really shopping for houses, builders and builders are additionally dealing with provide chain points and a decent labor market, compounding points additional.

“The final 12 months has seen a dramatic spike in rental costs because of these elements, with a 17% year-over-year improve in rental prices from February 2021 to February 2022, in line with knowledge from Zillow,” the examine finds.

Provide and demand is a serious impediment dealing with renters at this time, with the examine reporting a scarcity of round 4 million housing models. 

“Zoning and density restrictions have made it tougher so as to add housing inventory in lots of places, each for leases and in the true property market,” consultants say. “With rising actual property costs, 70% of the expansion of the rental market since 2009 has come from higher-income earners who may in any other case have purchased a house.”

Exacerbating the difficulty additional are high-income earners who’re compelled to remain within the rental market. Builders usually tend to cater to their wants with luxurious flats, additional isolating accessible housing for center or low-income earners.

When ABC4 spoke to Tonya Basset, head of Homie’s purchase facet agent staff, about whether or not Utah’s actual property market is a “bubble,” Basset believes that is probably not true for at this time’s market.

“I don’t suppose that’s going to occur right here in Utah,” says Basset. “Issues are a lot totally different now than in 2008.” She talked about {that a} comparable crash will probably be prevented by tighter loaning requirements and a dramatic lower in stock for consecutive years in Utah.

Bassett predicts a market crash might occur regularly, as rates of interest slowly rise on new dwelling loans. When requested a few predicted timeline, Basset believes it “will in all probability take greater than a few months,” and up to a couple years for the market to decelerate and equalize.

Whether or not you’re trying to lease or purchase, Basset says Utahns will sadly be dealing with a “brutal market.”

To take a look at the total report on rental charges throughout cities of all sizes within the U.S., click on right here