As 2018 comes to a close some renters may be worrying about increases in their 2019 rents. And it’s easy to see why they might be on edge. According to reports, renters paid $12.6 billion more in rent in 2018 than they did in 2017 which is about a 2.6 percent increase.
Additionally, the report states there are about 43.2 million households renting in the United States, a slight decline from 2017. Also, more than 10 percent ($55.6 billion) of all rent collected in the United States came from renters living in the New York City metro area.
Where rents are rising fast
Rents are currently rising the fastest in Orlando and Las Vegas, and renters in each of those cities spent about $4.4 billion on rent this year.
Renters spent $12.6 billion more paying their rent in 2018 than they did in 2017. The current median rent is $1,475, up 3 percent from a year ago. Throughout 2018, rents rose about 3 percent year over the year – continuing a gradual slowdown in rent appreciation that began in mid-2016.
However, the number of renter households in the U.S. decreased slightly in 2018. There were about 43.2 million renter households across the country this year – nearly 100,000 fewer than in 2017.
Slowdown in site
A gradual slowdown in rent appreciation has allowed renters looking to purchase homes greater ability to save for a down payment in recent years, and millennials – the generation comprising half of today’s renters – are also buying homes more than any other generation, according to the report. With more eligible buyers on the market, the number of renter households has decreased slightly over the past year.
“After several years of a booming economy, more millennials became financially able to become home owners in 2018,” said Joshua Clark, economist at HotPads, a Zillow company.”However, rent affordability continues to be a challenge, as those who still rent are paying even higher prices now than they were a year ago. If interest rates continue rising in 2019, more would-be homebuyers may decide to continue renting, which could put additional pressure on rent prices.
“Fortunately for renters, the housing market is also cooling nationwide, signaling that the entire market may be leveling off and making it easier for renters to keep up with housing expenses.”
Big Apple, big rents
Of the 50 largest metro areas in the U.S., renters in the New York City metro area spent the most on rent this year – a total of $55.6 billion. However, rent growth in the New York metro also slowed in 2018. Rents in the New York City metro area are rising just 1 percent annually now, compared to 1.8 percent annually at this time last year.
While rent appreciation has been steady or slowed in many metro areas, some markets in the Southeast and Southwest are still seeing significant price gains. Rents are appreciating the fastest in Orlando, Las Vegas and Phoenix, at a rate more than twice as fast as the national median. Renters in Orlando and Las Vegas spent about $4.4 billion on rent in 2018, while renters in Phoenix spent about $7.5 billion.
Check out this table below for more stats:
|
Metropolitan Area |
Total
Rent Paid, 2018iv |
Total
Rent Paid, 2017 | Renter Households, 2018 | Renter Households, 2017 |
Median Rent, Q4 2018 | YoY Change |
| United States | $504.4 billion | $491.8 billion | 43.2 million | 43.3 million | $1,475 | 3.0% |
| New York, NY | $55.6 billion | $54.7 billion | 3.5 million | 3.5 million | $2,370 | 1.0% |
| Los Angeles, CA | $40.4 billion | $38.5 billion | 2.3 million | 2.2 million | $2,920 | 4.2% |
| Chicago, IL | $15.6 billion | $14.8 billion | 1.3 million | 1.2 million | $1,785 | 2.1% |
| Dallas, TX | $12.3 billion | $12.3 billion | 1.0 million | 1.0 million | $1,665 | 3.0% |
| Philadelphia, PA | $8.9 billion | $8.8 billion | 752,000 | 771,000 | $1,680 | 2.6% |
| Houston, TX | $10.4 billion | $10.3 billion | 927,000 | 902,000 | $1,585 | 2.6% |
| Washington, DC | $14.8 billion | $14.3 billion | 807,000 | 792,000 | $2,180 | 1.8% |
| Miami, FL | $12.7 billion | $12.3 billion | 861,000 | 850,000 | $2,025 | 2.7% |
| Atlanta, GA | $9.3 billion | $8.8 billion | 781,000 | 775,000 | $1,470 | 5.3% |
| Boston, MA | $11.3 billion | $10.9 billion | 699,000 | 699,000 | $2,410 | 3.2% |
| San Francisco, CA | $17.0 billion | $16.2 billion | 779,000 | 766,000 | $3,495 | 3.4% |
| Detroit, MI | $5.1 billion | $4.9 billion | 530,000 | 525,000 | $1,300 | 3.7% |
| Riverside, CA | $7.4 billion | $6.7 billion | 516,000 | 496,000 | $1,960 | 5.7% |
| Phoenix, AZ | $7.5 billion | $6.9 billion | 625,000 | 607,000 | $1,495 | 6.2% |
| Seattle, WA | $9.8 billion | $9.4 billion | 588,000 | 593,000 | $2,240 | 4.0% |
| Minneapolis, MN | $5.2 billion | $5.0 billion | 422,000 | 417,000 | $1,680 | 3.7% |
| San Diego, CA | $10.2 billion | $9.6 billion | 530,000 | 524,000 | $2,720 | 4.8% |
| St. Louis, MO | $3.1 billion | $3.0 billion | 355,000 | 349,000 | $1,200 | 2.1% |
| Tampa, FL | $5.2 billion | $4.9 billion | 433,000 | 430,000 | $1,475 | 5.6% |
| Baltimore, MD | $4.5 billion | $4.6 billion | 354,000 | 348,000 | $1,745 | 1.1% |
| Denver, CO | $6.4 billion | $6.1 billion | 405,000 | 403,000 | $2,115 | 3.9% |
| Pittsburgh, PA | $2.4 billion | $2.5 billion | 297,000 | 297,000 | $1,100 | 2.7% |
| Portland, OR | $4.9 billion | $4.7 billion | 351,000 | 345,000 | $1,945 | 3.0% |
| Charlotte, NC | $3.4 billion | $3.3 billion | 330,000 | 330,000 | $1,385 | 4.1% |
| Sacramento, CA | $4.8 billion | $4.4 billion | 331,000 | 326,000 | $1,970 | 5.9% |
| San Antonio, TX | $3.1 billion | $2.9 billion | 298,000 | 291,000 | $1,385 | 2.5% |
| Orlando, FL | $4.4 billion | $4.2 billion | 339,000 | 338,000 | $1,530 | 6.7% |
| Cincinnati, OH | $2.5 billion | $2.4 billion | 285,000 | 287,000 | $1,230 | 3.1% |
| Cleveland, OH | $2.5 billion | $2.5 billion | 303,000 | 307,000 | $1,205 | 2.6% |
| Kansas City, MO | $2.8 billion | $2.8 billion | 296,000 | 300,000 | $1,260 | 3.1% |
| Las Vegas, NV | $4.4 billion | $4.1 billion | 360,000 | 358,000 | $1,420 | 6.5% |
| Columbus, OH | $2.9 billion | $2.8 billion | 297,000 | 293,000 | $1,435 | 4.0% |
| Indianapolis, IN | $2.5 billion | $2.4 billion | 270,000 | 266,000 | $1,240 | 3.4% |
| San Jose, CA | $7.0 billion | $6.7 billion | 275,000 | 273,000 | $3,720 | 4.0% |
| Austin, TX | $4.2 billion | $4.4 billion | 316,000 | 319,000 | $1,750 | 2.6% |
| Virginia Beach, VA | $2.9 billion | $2.8 billion | 247,000 | 242,000 | $1,485 | 1.8% |
| Nashville, TN | $2.8 billion | $2.8 billion | 263,000 | 267,000 | $1,510 | 2.6% |
| Providence, RI | $2.5 billion | $2.3 billion | 251,000 | 243,000 | $1,770 | 4.8% |
| Milwaukee, WI | $2.4 billion | $2.3 billion | 252,000 | 250,000 | $1,385 | 2.1% |
| Jacksonville, FL | $2.2 billion | $2.1 billion | 197,000 | 200,000 | $1,395 | 5.3% |
| Memphis, TN | $1.6 billion | $1.6 billion | 188,000 | 182,000 | $1,045 | 2.7% |
| Oklahoma City, OK | $1.5 billion | $1.6 billion | 194,000 | 194,000 | $1,120 | 1.5% |
| Louisville, KY | $1.3 billion | $1.3 billion | 166,000 | 163,000 | $1,140 | 3.3% |
| Hartford, CT | $1.7 billion | $1.7 billion | 160,000 | 158,000 | $1,670 | 1.8% |
| Richmond, VA | $1.8 billion | $1.7 billion | 167,000 | 161,000 | $1,465 | 4.0% |
| New Orleans, LA | $1.9 billion | $1.8 billion | 186,000 | 182,000 | $1,450 | 1.7% |
| Buffalo, NY | $1.4 billion | $1.3 billion | 162,000 | 165,000 | $1,275 | 3.5% |
| Raleigh, NC | $1.9 billion | $1.9 billion | 176,000 | 172,000 | $1,475 | 3.1% |
| Birmingham, AL | $1.0 billion | $1.0 billion | 137,000 | 141,000 | $1,045 | 2.9% |
| Salt Lake City, UT | $1.6 billion | $1.4 billion | 130,000 | 129,000 | $1,600 | 4.4% |
Source: This report is according to HotPads, a Zillow group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.
