Continue your search for the house so that you don’t miss a thing.
No matter what your local rental market looks like, finding the right spot for your budget, schedule, and wish list can be balanced. Understanding the current market and the typical implementation process will help relieve stress.
Rental market today
In many subways, rental takes more revenue than in previous years, largely because rental demand exceeds supply and prices rise. The growing job market – like the job boom in the Seattle metro area – has contributed to the supply shortage.
Strong demand will help share rental income at 29.1% nationwide, according to a November 2017 survey by Zillow Research, up from an average of 25.8% between 1985 and 2000. Although in many regions, about 29% – like Chicago (29.7%) and Austin (TX) (29%) or even less in Atlanta (26%) – renters spend most of their monthly income on rent.
In addition, many tenants pay more than 30% of their income in the form of rent. Renters in Los Angeles pay most of their income, 48.4%, but even places like Portland, OR (32.5%), New Orleans (33.2%), and Miami (41%) consume more tenant wages than before.
Although rents have increased over the past decade, income has largely been out of control. In October and November 2017, rental income increased respectively, but income has not matched rents for most of the past five years.
In addition to spending most of their income on rent, tenants are also seeing a rent increase. 79% of tenants who recently moved from a previous rental saw their rent increase before moving. Of nearly six in ten tenants who have rented their current home for more than a year (57%), the rental price has also increased from the first stage.
In addition to the rental fee, tenants should expect immediate action. Unlike buying a home, which takes an average of 4.3 months, renters are looking for an average of 2.6 months; a quarter (26%) are looking for less than a month.
Manage your expectations yourself
In this complex rental market, we encourage you to enter your research, fully understanding what you can afford. Don’t know what the number of months looks like? Use a rent calculator to polish it up, and remember: many landlords charge rent and damages in the first and last months. When requesting, check for any additional costs; they may be different from the owner.