By Arlenys Tabare
According to data recently released by Zillowaverage monthly rental payments reached $1,910 in March, representing an increase of 1.8% compared to the previous year; However, it is positioned as the lowest growth in terms of cost since 2020.
In the midst of a tight real estate market, with high mortgage rates and a lack of inventory that has driven home prices to historic levels, many have turned to the rental market as a more affordable option; nevertheless, Due to the high demand in recent years, prices in this sector have also skyrocketed.
The Zillow report also details that, for the month of March, Rents for single-family homes (terraced or semi-detached houses, duplexes, quadruplexes) rose to 2.5% year-on-year and forty five% since 2020, while multifamily rents increased 1.3% year-over-year and 28% since 2020.
For Kara Ng, senior economist at Zillow, after the pandemic, rental demand has skyrocketed sharply, facing limited supply. “Growth is slowing now as new supply enters the market, demand normalizes, and affordability constraints reduce the pricing power of homeowners,” he told CBS.
Rental prices also vary from state to state depending on the cities’ cost of living; For example, in the case of Tampa, Florida, or San Antonio, Texas, they fell 1.6%while in Austin, Texas, they increased to 2.3%.
In the analysis, Zillow states that this slow growth in rental costs also represents relief for the pockets of many tenants; Following an increase in income, the average household spent 26.5% of their income on rent last month alone. According to analysts, For a household to comfortably pay rent, they would have to earn at least $76,400 a year this year.
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