According to the latest CoreLogic data released Tuesday, rent prices in November grew by 3 percent year-over-year. After peaking at 4.2 percent in November 2016, growth has stabilized. The current 3 percent is unchanged from November 2018 and down 0.1 percent from October.
That said, Southwestern rents have been growing disproportionately to the rest of the country. Phoenix, Tucson and Las Vegas saw some of the highest price spikes in the country at 6.9 percent, 5.7 percent and 5.1 percent, respectively.
Along with Seattle (which saw 5.4 percent growth), the four cities have seen the most dramatic rent increases in the country — in no small part because their strong job markets attract new residents while the local housing industry cannot keep up with rising demand. Phoenix, in particular, held the spot for the city with the fastest-rising rent for the last 12 months.
“Strong rent growth in the Southwest reflects strong population growth in this part of the U.S.,” Molly Boesel, principal economist at CoreLogic, said in a prepared statement. “Arizona ranked third for population growth in 2019 by both number and percentage increase, according to the U.S. Census Bureau. In contrast, Illinois and Hawaii both had a decrease in population in 2019, which could account for the slower rent growth in these regions.”
Low-end, or affordable properties, are another sector of the rental market that is seeing bigger increases. Rent for properties that cost less than 75 percent of the regional median rate increased 3.6 percent year-over-year while rentals asking greater than 125 percent of a region’s median grew by just 2.7 percent.
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