There’s
no doubt that Bay Area home prices have been climbing steadily since the
recession, but as it turns out rental housing costs are going up even faster
and it is creating what Zillow calls a national rental crisis.
Rents
all across the country are going up faster than home prices, and they’re going
up in our region faster than anywhere in the U.S., Zillow reported in its
latest rent index.
In
the five-county San Francisco metropolitan area, the Zillow Rent Index soared
to $3,162, up 14.9 percent in April from a year ago, the fastest increase in
the nation. And who was number two? The San Jose metro area, where the Zillow
Rent Index rose to $3,287, up 12.9 percent.
Denver,
Kansas City and Portland rounded out the top five rental markets with the
greatest price increases. Nationally, the Zillow Rent Index rose 4 percent in
April from a year ago to $1,364. The rent index is the median monthly rent
“Zestimate” of all properties in a region, not just those for rent.
While
home prices have moved up and down over the past decade, Zillow said that rents
have been rising steadily during that time. In April, rent increases nationally
outpaced home-price appreciation for the first time in years, accelerating what
Zillow called a “rental crisis.”
In
the San Francisco metro area, rents started rising faster than home values in
July 2014, according to the report, and they have been growing faster ever
since on an annual basis.
The
report added that a slowdown in home-price appreciation will help renters
looking to buy a home in much of the nation.Thank you for reading,
Francis
