By KIMBERLEY HAAS
More than a quarter of the states in the country have experienced a rental price increase of 20% or more in 2021 and a senior research analyst says people moving out of cities and into more rural communities are partially to blame.
Nick VinZant works for QuoteWizard by LendingTree. He co-authored an article that was published this month which shows that Florida had the highest percentage increase in the nation at 29%.
The average rent for a one-bedroom apartment in Florida is about $1,425.
Arizona, Georgia, Idaho, Massachusetts, Nevada, New Hampshire, New Mexico, New York, North Carolina, Rhode Island, Tennessee, Utah, and Washington all saw rents increase by more than 20% for one-bedroom apartments in 2021, according to the article.
VinZant told The Mortgage Note on Monday that when someone who can work remotely or in a hybrid model moves, for example, from Boston to New Hampshire, they get the best of both worlds. They maintain their Boston salary while enjoying the peace and quiet of suburbian or rural life, sometimes in a luxury setting.
“You have people who are coming in from other areas that have traditionally paid a lot more, and are willing to pay more. The other thing that we really noticed is when you look at construction trends, is that a lot of developers, when they’re building apartments, they are now catering more towards the ‘luxury’ lifestyle,” VinZant said.
These apartments typically are in a downtown setting, mixed-use and have facilities such as gyms or pools.
Inflation is affecting renters.
VinZant said the housing market being red-hot this summer did not help rural and suburbian renters who saw their rental prices go up as people chose to sell their homes and move into these more attractive areas.
VinZant also authored an article on inflation’s impact on each state. He said inflation has impacted the people on the margins the most, so rental prices going up doesn’t help those who were struggling to pay for housing, gas, and food prior to the pandemic.
So is it too late to sell in the more metropolitan areas and take full advantage of remote or hybrid work in a smaller community?
VinZant says maybe.
“The difficulty here is now, can you still take advantage of it? Well, the housing market is starting to cool. If you sell your house and then you want to go rent, the renting market is going to be very expensive for you,” VinZant said.
Hawaii has the highest average rental price in the country for a one-bedroom apartment at $1,711. That price has risen by 16% in the last year.
North Dakota has the cheapest average rental price in the country for a one-bedroom apartment at $669. That price has risen by 1 percent in the last year.