Rents in the U.S. are expected to shoot northwards as more and more young people are desperate to leave home after they find a job. Rents are on the uptrend over that past five years.
Another factor affecting rents are the rise in land and development costs of core urban areas. As demand for apartments increase, builders will look to extract their pound of flesh to recoup costs faster.
The faster job growth in metropolitan areas is seeing higher-than-average rent hikes.
According to commercial property tracker Reis Inc., the average U.S. rent has increased 14 percent to $1,124 over the past five years since 2010.
Analysts from Reis indicate that the growth figure is considerably larger than the inflation rate increase of about 10 percent, and twice as big as the average price increase in other commodities across the US since 2010.
Reis projects the trend to continue, and expects rents to rise another 3.3 percent this year, to an average $1,161, despite a surge in apartment construction. Last year, the rent growth was a bit faster at 3.6 percent.
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