According
to the latest statistics, the cost of housing and apartment rent in the USA is
at an all-time high. While the national average has decreased over the last
year, the cost in some states continues to rise. The median price for an
apartment in California is $2,542 per month, making it the most expensive place
to rent. In contrast, the median price for an apartment in West Virginia is
only $866 per month, almost one-third less than the national average.
The Cost of Living in USA
The
cost of housing and apartment rent has consistently outpaced wage inflation in
recent years. The cost of a one-bedroom apartment in San Jose, California is
$2,420 per month, making it one of the most expensive markets in the country.
Rent prices in Miami have also increased over the past few years, with the
median one-bedroom apartment costing about $2,500 in 2020. The increase in the
cost of renting in Miami is in line with the increase in demand for properties
in Florida in recent years.
The
cost of housing and apartment rent in the USA has increased in the past year,
according to Zumper's Rent Price Report. High demand and limited supply have
contributed to this price growth. As a result, apartment hunters have had to be
creative in their search for a place to rent. Some are willing to move to a new
neighborhood or accept a lesser standard of amenities. Others are opting for
shorter leases.
Regional trends
While
housing prices continue to rise across the country, there are some regional
differences, including the vacancy rates in certain cities. Rents in Mountain
View, CA, dropped by 19 percent in May and San Francisco dropped by 12 percent.
The median rent in San Francisco has increased 0.1 percent over the past year,
but it is still below the level it reached before the pandemic.
Most
of the fastest growing regions for rent were located in the Sun Belt.
California, Arizona, Nevada, and Florida experienced the highest rent growth in
the last year. Coastal cities, such as Miami and Tampa, saw the greatest
increases in the past six months. However, the growth rate has been tempered
since December, with some areas reporting lower rent growth than others.
While
the rate of rent growth remains positive across the country, it has eased from
last year's pace. This may be due in part to higher mortgage rates. Apartment
vacancies remained at a low of 4.1 percent last fall. Regardless, the vacancy
rate is well below the pre-pandemic norm.
Some
parts of the country have an older housing stock. In the Midwest and Northeast,
the housing stock is much older than in the South. This makes it difficult for
new construction in many regions. However, manufactured housing is an important
source of cheaper unsubsidized housing in these regions.
Impact of eviction moratorium
During
the housing crunch, an estimated one in four low-income renters was behind on
their rent. This is particularly true for Black and Latinx tenants, who are
more vulnerable to the long-term consequences of rent debt. Tenants of color were
more likely to experience rent increases than whites and Asians, and rent
increases were more than twice as high for tenants below the federal poverty
line. As a result, one third of low-income renters fear being evicted from
their homes when the eviction moratorium ends.
Recent
research has shown that a nationwide eviction moratorium is beneficial for
household stability. Researchers at the U.S. Government Accountability Office
have found that evictions in states with active local moratoriums were 91 percent
lower than in jurisdictions without a moratorium in place. In December 2020,
fewer than half of all eviction filings will be in cities with an active local
moratorium.
The
eviction crisis has hit renters harder than homeowners and policymakers have
tried to alleviate the crisis with eviction moratoria and billions of dollars
in rental assistance. These measures will help keep eviction rates below
historic averages, but they will put a strain on landlords.
