Twin Cities Landlords Make The Top Ten
My favorite rental analysis tool, Rentometer, released its Mid-Year Report for National Trends in Single-Family Rental Markets. Rentometer includes duplexes as part of its single-family home data.
The report contained great news for Minneapolis and St Paul landlords. While much of the country saw declining rent and increasing vacancy rates, Minneapolis experienced a 7.4% year over year growth in rent for a 3 bedroom single-family home (or duplex). Median rent now stands at $2395.
It wasn’t just Minneapolis/St Paul that experienced healthy rent growth. Duluth saw rents 5.6% year over year to $1875. Meanwhile Rochester experienced an uptick of 4.5% to $1985.
Overall the Midwest and Northeast regions of the country were where rent grew fastest. Midwest rents increased 6.1% while the Northeast experienced a rise of 4.6%. The Pacific region saw 3.1% and the Rocky’s 1.1% increases.
Minneapolis/St Paul ranked 7th in the nation for fastest rent growth.
Boston, Mass. lead the nation with rent jumping to $4500 a month, which represented a 12.5% increase over last year. They were followed by Staten Island, NY with 9.4%, 3. Long Beach, CA with 9.0%, Seattle, WA with 8.4%, Baltimore, MD with 8.3%, Honolulul, HI with 8.1%, Minneapolis, then Indianapolis with 6.1%, and Queens, NY with 5.7%.
The Midwest remains the most affordable region in the nation for renters.
Believe it or not, media rents remain below historical growth levels.
Nationwide data was not as promising, however. Median asking prices nationwide were up just 1.7% year over year, which translates to $2135 per month. That percentage is below the 2.7-2.8% first quarter inflation rate. In other words, revenue wasn’t growing at the same rate as expenses.
According to the latest Census report, vacancy rates for 3 bedroom single family homes also rose to 6.3% in the first quarter. This was an increase of 1% over the first quarter of last year, and the highest level since the first quarter of 2016.
To read the full report, CLICK HERE.