If you already got a rent increase this year, you can probably expect a similar one when your lease comes up!
Read more: This is what $1,500 a month in rent gets you in America’s biggest cities
Zillow: West Coast to experience biggest rent hikes
According to Zillow’s forecast, rents nationwide are expected to rise 1.7% over the next year, the same rate of appreciation as the past 12 months. Rents will go up in 34 of the 35 largest U.S. metro areas.
The highest increases will be in Seattle and Portland, with hikes of 6% or perhaps even more.
‘High rent growth in these markets is being driven by high demand and low supply,’ said Zillow Chief Economist Dr. Svenja Gudell. ‘We have more renters today than in the past and most newly formed households are renter households. This taken together with a lack of new rental construction at less expensive price points has been a recipe for rising rents.”
Here are the 10 cities with the highest forecasted rent appreciation:
- Seattle – 7.2 percent
- Portland – 6.0 percent
- Denver – 5.9 percent
- Cincinnati – 5.2 percent
- San Francisco – 4.9 percent
- Los Angeles – 4.8 percent
- Sacramento – 4.7 percent
- San Diego – 4.7 percent
- Phoenix – 4.6 percent
- San Jose – 4.5 percent
The big picture: Rent forecast for major metro areas
|
Metropolitan Area |
Zillow Rent Index (ZRI)ii |
Percent ZRI Change Over the Past Year |
Zillow Rent Forecast Over the Next Year |
|
United States |
$ 1,405 |
1.7% |
1.7% |
|
New York, NY |
$ 2,399 |
2.5% |
3.2% |
|
Los Angeles-Long Beach-Anaheim, CA |
$ 2,593 |
4.7% |
4.8% |
|
Chicago, IL |
$ 1,643 |
-0.2% |
0.9% |
|
Dallas-Fort Worth, TX |
$ 1,543 |
3.6% |
3.8% |
|
Philadelphia, PA |
$ 1,578 |
1.3% |
1.6% |
|
Houston, TX |
$ 1,576 |
0.5% |
1.6% |
|
Washington, DC |
$ 2,121 |
0.5% |
1.1% |
|
Miami-Fort Lauderdale, FL |
$ 1,885 |
4.2% |
3.2% |
|
Atlanta, GA |
$ 1,314 |
3.5% |
3.4% |
|
Boston, MA |
$ 2,310 |
3.9% |
3.9% |
|
San Francisco, CA |
$ 3,406 |
4.8% |
4.9% |
|
Detroit, MI |
$ 1,171 |
2.5% |
0.8% |
|
Riverside, CA |
$ 1,736 |
3.4% |
3.2% |
|
Phoenix, AZ |
$ 1,297 |
4.2% |
4.6% |
|
Seattle, WA |
$ 2,067 |
9.7% |
7.2% |
|
Minneapolis-St Paul, MN |
$ 1,540 |
2.5% |
2.5% |
|
San Diego, CA |
$ 2,427 |
4.9% |
4.7% |
|
St. Louis, MO |
$ 1,128 |
0.5% |
-1.6% |
|
Tampa, FL |
$ 1,332 |
3.3% |
1.7% |
|
Baltimore, MD |
$ 1,731 |
0.6% |
1.6% |
|
Denver, CO |
$ 2,013 |
4.1% |
5.9% |
|
Pittsburgh, PA |
$ 1,100 |
-0.5% |
1.5% |
|
Portland, OR |
$ 1,777 |
7.4% |
6.0% |
|
Charlotte, NC |
$ 1,237 |
1.7% |
3.1% |
|
Sacramento, CA |
$ 1,681 |
5.5% |
4.7% |
|
San Antonio, TX |
$ 1,317 |
0.9% |
1.7% |
|
Orlando, FL |
$ 1,372 |
2.8% |
3.4% |
|
Cincinnati, OH |
$ 1,239 |
0.2% |
5.2% |
|
Cleveland, OH |
$ 1,146 |
1.3% |
1.8% |
|
Kansas City, MO |
$ 1,235 |
2.3% |
3.2% |
|
Las Vegas, NV |
$ 1,237 |
2.0% |
1.9% |
|
Columbus, OH |
$ 1,293 |
2.0% |
2.9% |
|
Indianapolis, IN |
$ 1,196 |
0.4% |
0.7% |
|
San Jose, CA |
$ 3,517 |
3.8% |
4.5% |
|
Austin, TX |
$ 1,713 |
2.0% |
3.2% |
How to find a deal
While supply and demand will play a big role in your potential rent increase next year, Clark says there are a few things you can do to get the best price possible.
1. Shop the market: About six to eight weeks before your current lease is up, see what’s available in your price range. Keep in mind that prices change based on market conditions, usually every 24 hours.
2. Consider the shadow market: Look beyond traditional apartment complexes. There are plenty of condos and single family homes that are being rented out by investors. You may be able to find a better deal by going this route.
3. Shop the market again: If there’s one complex that you just love, but it’s too expensive, check the price once or twice a week.
Read more: Unhappy renter? Be careful, what you share online could get you evicted
