By Arlenys Tabare
Since inflation spiked in mid-2022 and home prices began to rise, the real estate market has been sharply adjusted with high mortgage rates and lack of inventory that has caused many future buyers to stay away from the sector.
However, this has favored the rental market, which in recent years has reached great demand and as this summer approaches there are some cities in the country that offer the best options.
A report recently published by Zillow evaluated which are the five rental housing markets in the US with the highest demand for this summer, California being one of the most attractive places.
In this regard, Kara Ng, senior economist at Zillow commented that “in the most in-demand rental markets, the logic is simple: There are more people who want to live there than there are homes available for rent, whether it is access to services, a strong labor market or family ties; tenants compete for limited supply,” he said.
Zillow’s analysis ranks cities based on the Zillow Observed Rental Index (ZORI), expected vacancy rate and annual rent growth, but Ng added that, “Markets not on the list don’t necessarily lack demand; they just did a better job of bringing in new supply.”
San Francisco, California
- ZORI:$3,206
- Unemployment rate forecast: 4.3%
- Annual rental growth: 5.4%
Chicago, Illinois
- ZORI:$2,219
- Unemployment rate forecast: 5.3%
- Annual rental growth: 5.7%
New York, New York
- ZORI: $3,406
- Unemployment rate forecast: 4.3%
- Annual rental growth: 4.5%
Providence, Rhode Island
- ZORI: $2,154
- Unemployment rate forecast: 5.1%
- Annual rental growth: 5%
Hartford, Connecticut
- ZORI: $1,940
- Unemployment rate forecast: 4.3%
- Annual rental growth: 3.9%
Ng added that, “In 2024, the United States built more new homes than in any other year in the last half century, but that boom largely bypassed the Northeast and coastal California, which is why competition in the rental market is so intense there,” he said.
Keep reading:
- Mortgage rates in the US increase to 6.51% in the last weeks of May
- US home construction fell sharply in April
- Are you thinking of moving? These are the 5 most affordable cities in the US to buy a home, according to Wallethub
- Sales of existing homes in the US increased just 0.2% in April
