According to a rental market study released by Zumper, Oakland, Scottsdale and St. Paul are attracting more renters than their larger, nearby counterparts.
As rent growth reaches untenable levels in some of America’s most populous and popular cities, renters are turning their sights to nearby satellite cities with similar amenities and lower housing prices.
According to a Zumper rental market analysis released Thursday, Oakland, California; Scottsdale, Arizona; and St. Paul, Minnesota, are experiencing higher levels of renter demand than their nearby, more expensive neighbors.
In 2019, Oakland renter demand increased a whopping 62 percent as renters from San Francisco crossed the bay to find cheaper housing. San Francisco’s one-bedroom median rent soared to $3,603 in 2019 — $1,237 more than Oakland’s median rent prices.
The satellite cities of Scottsdale and St. Paul also managed to outshine their counterparts, Phoenix and Minneapolis.
Over the past year, renter demand increased 62 percent in Scottsdale despite the median rent ($1,394) surpassing Phoenix by $405. However, Zumper said a strong jobs market and an overall more affordable cost of living helped Scottsdale get the edge.
Lastly, renter demand in St. Paul increased 33 percent year-over-year, 12 percent higher than Minneapolis. Much like Scottsdale, a robust jobs market and a cheaper cost of living ($1,315 vs. $1,393) pushed St. Paul ahead of its twin city.
While Oakland, Scottsdale, and St. Paul over-performed, Fort Worth, Texas; Fort Lauderdale, Florida; and Kansas City, Kansas still lagged behind.
Renter demand growth in Fort Worth was one percent shy of Dallas (34 percent), as plenty of millennials are still flocking to the Dallas area where rents are affordable and annual median incomes top $57,000. Fort Lauderdale (18 percent) was only 4 percent behind Tampa (22 percent) as both cities offer similar amenities, costs of living and access to world-class universities.
On the other hand, Kansas City, Kansas’s renter demand lagged behind Kansas City, Missouri by 19 percent, as lower income and sales taxes attract renters looking to save a few extra bucks.
Are you ready for what the industry holds in 2020? Inman Connect New York is your key to unlocking opportunity in a changing market. At Connect you will gain insight into the future, discover new strategies and network with real estate’s best and brightest to accelerate your business. Create your 2020 success story at Inman Connect New York, January 28-31, 2020.
Thinking of bringing your team? There are special onsite perks and discounts when you buy tickets together. Contact us to find out more.