Finding a place to rent in North Texas is getting more and more expensive, and it’s hard to imagine the costs going down anytime soon.
Soaring housing prices are not helping.
Thousands of new high-priced rental units are opening. Revenues are up percent above pre-COVID highs, according to the latest data from RealPage.
The increases can be attributed to the current US inflation rate of 7.5%, the highest increase in 40 years.
“Across the country, rent growth continues to be driven by a combination of strong tenant wage growth, strong housing demand and ultra-low availability,” analysts said. RealPage in the latest report.
The Federal Reserve Bank of New York released a report last month forecasting that rents will continue to rise about 10% in 2022.
Rising rental costs are nothing new, of course. They have been increasing rapidly for a year. Nationally, Redfin said average rents rose 14% last year, to $1,877.
Redfin reported a 29% increase in Dallas and Fort Worth. Austin is again first in another housing statistic, but no one would want to. Austin led the United States for the fastest rising rents with a 40% annual increase.
Eleven million households, or 25% of renters, spend more than half their monthly income on rent, according to an analysis of 2018 census data by Harvard University’s Joint Center for Housing Studies.
Despite the increases, RealPage reports that only 2.4% of apartments were empty, a record high. In the survey of 150 apartment markets in the United States, 146 of the metro areas had vacancy rates below 4%.
According to RealPage, average rents in the Dallas area climbed 18.7% and rents in the Fort Worth area increased 16% from a year earlier.
Zumper takes this a step further with its Monthly Metro Dallas Report, an analysis of active listings in 14 North Texas cities.
In its report, Frisco ranked as the most expensive city for a one-bedroom apartment with a rent of $1,580, just ahead of Richardson at $1,550. Carrollton saw the biggest spike with a 26.3% year-over-year increase.
For the good news: Denton ranked as the most affordable city with a 1BR priced at $1,000.