Rent prices rose on average more than 10% nationwide in the third quarter compared to the same period last year, with significant spikes seen in many small towns, according to a recent analysis by Rent. com.
In the United States, monthly rent for a one-bedroom apartment rose an average of 10.59% to $ 1,690, according to the study, and two-bedroom apartments rose 11.88% for reach $ 2,050.
An increase in rental prices from 2020 is not entirely a shock given that prices fell in many areas at the start of the COVID-19 pandemic due to vacancies, but data from Rent.com show big jumps in some areas with declines in others for the third quarter. .
The study found that all but ten states had seen an increase in rates for one-bedroom apartments, with the highest peaks seen in Idaho at 56.96% at $ 1,614, Louisiana at 22. 93% to $ 1,054 and Oklahoma to 22.87% to $ 965.
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Among states that saw rent cuts for one-bedroom units, rent prices in South Dakota registered the largest average drop, 26.27% to $ 690, followed by New Mexico by 14.35% to $ 983 and Kentucky 14.30% to $ 938.
Small and medium-sized towns have seen significant price increases.
“As rental prices rose in many cities across the country from the third quarter of 2020 to the third quarter of 2021, the rate of increase appeared to be greater in medium and small towns than in large cities,” said Brian Carberry. , Editor-in-Chief of Rent.com, at FOX Business.
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“When you look at cities with a population of over 250,000, only one city has had a rate increase of over 100% (Arlington, TX for two-bedroom apartments),” Carberry explained. “But when we look at medium and small cities, we see a triple-digit increase in 9 locations: Maple Grove, MN (both one and two bedroom apartments); Smyrna, GA; Port Arthur, TX (both two bedroom apartments); Tallahassee, FL (one and two bedroom apartments); Meridian, ID and Boulder, CO. “
Carberry tells him that “this suggests higher demand in these medium to small towns due to limited stocks.”
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Another factor could be at play as to where rent prices tend to rise and fall, according to Carberry.
“The ability to work from home has allowed tenants to live across the country, not just where their offices are,” he noted. “This has increased the popularity of secondary or satellite towns which are still close to major metropolitan areas, but which can offer a more affordable rental price.”