US housing costs are rising again Zumper’s National Rent Report.
According to the report, the national average rent for a one-bedroom apartment increased 1.5 percent in June to $1,526, while the national average rent for a two-bedroom apartment increased 1.9 percent to $1,900.
“The continued monthly upward trend in the national index, combined with current persistent inflation, suggests that the housing market will remain a challenge to the Federal Reserve’s efforts to lower interest rates this year,” the report said.
Nationwide, one- and two-bedroom rental prices are up 1.5% and 2.1% annually, respectively.
While rents nationwide are “currently fairly low,” they have not yet offset the significant increases in rents that have occurred across the country over the past few years, the report said.
“Prices for one- and two-bedroom apartments nationwide are still $300 to $400 higher than they were four years ago,” the report said.
New York’s rental market continues to see rapid rent growth, with four New York State cities seeing annual rent increases in double digits.
Syracuse rents have risen 29 percent over the past year, making it the fastest-growing rental market in the country, while Buffalo, Rochester and New York City have also seen rents increase by more than 10 percent.
Rising rental prices in these cities are partly driven by increased demand.
For example, New York City’s residential vacancy rate fell 1.4 percent, a significant decrease from the city’s 4.5 percent vacancy rate two years ago, the report said.
And housing demand in these four cities is spilling over into surrounding markets such as Newark, New Jersey, and New Haven, Connecticut.
According to the report, rents in both cities have increased by more than 7% since June of last year.
