Rise in Average US apartment rent: Survey

Possible rise in Average US apartment rents

It has been anticipated that average US apartment rents will increase for the sixth year consecutively. According to reports, an increase in apartment construction is not expected to cut rise in rents in most of the major cities. And it is expected to continue as demand for rentals remains high. Increasing jobs are making it easier for people to afford their own apartment.

There are some factors because of which apartment dwellers will experience their rent rise again this year. According to Marcus & Millichap, a commercial real estate services firm, the average effective rent will increase from 3% to 3.5% this year. It has exceeded the long-term average growth of about 2.5%.

According to the firm, this increase is slower than last year; during that time, the average US monthly rent increased 5.2% to $1,179. According to Hessam Nadji, chief strategy officer at Marcus & Millichap, the only good news is that rents in the markets are increasing at a slower rate, however they are still increasing.

The cost of renting has increased gradually over a few past years. Effective rents have also increased throughout the nation at an average of 15.2% between 2007 and 2014. Demand for rental housing has increased because of a stronger job market and economy.