As Americans move around the country looking for new jobs and greater quality of life, they’ll see apartment rents going up in many U.S. cities.
Higher demand and lack of inventory contribute to this rental growth.
If you are an apartment renter, it’s wise to keep an eye on prices.
Which cities will see rent increases in 2014? These ten top the list, according to Reis Inc. and also shared by apartment industry insiders Multifamily Executive.
Coffee isn’t the only hot commodity here. Seattle apartments top the list for rent growth this year, possibly due to a booming job market with big players like Microsoft, Starbucks and Amazon in the area. A report by the Apartments Insights Washington firm of Seattle, however, predicts renters will have more choices in the coming year and market prices may correspondingly soften.
San Francisco 4.7%
Affordable San Francisco apartments will be hard to come by; everybody loves the city by the bay. Rents continue to rise as top tech talent moves here for jobs. Data shared by Jay Denton of Axiometrics in USAToday suggests that rents have increased in San Francisco by 43% since 2009. According to the City and County of San Francisco Rent Board, rents for established tenants may be raised as much as 1% for the period March 1, 2014, through February 28, 2015.
Denver’s proximity to skiing, mountain biking and outdoor activities makes it naturally appealing. Yearning for a better work/life balance means rent prices in the Denver apartment rental market are peaking. The Denver Business Journal reports a projected increase of 4.9 percent for rents in metro Denver over the course of 2014.
San Jose 4.5%
Fast-paced growth in California’s Silicon Valley means rent is up-and-coming, too. There might be some relief in sight for San Jose renters, however: Nick Grotjahn of RealFacts shared in the San Jose Mercury News that the addition of more apartment units into the market may slow rent increases for the year. Renters can choose between many great apartments to spend ad-venture capital in this “start-up central.”
Nashville experienced the highest-percentage rent growth in the nation for a time last year. Perhaps the popularity of the TV show “Nashville” has made local apartment rentals such a big hit lately in this music town. Here’s hoping the song for renters living there plays a little sweeter this year.
San Diego 4%
With an amazing waterside location and weather that can’t be beat, San Diego has always been a top-dollar town. Even after an average 5% rent increase over the last year, San Diego is a place worth spending your rent money on. A great zoo, beautiful view and laid-back lifestyle are worth every penny.
Austin has been growing rapidly for several years, so it makes sense that a rent increase would catch up eventually. Ryan Severino, chief economist for Reis Inc., said that an increase in construction means rents may be difficult to raise further in 2014, however. Competition may be the slight silver lining, perhaps, to help this artistic community avoid feeling the pinch.
Everything is bigger in Texas, including the rent. An influx of people looking to seize opportunity in the great state is leading to high apartment occupancy rates and fewer available units to choose from. Still, you’ll find top-notch apartments in this growing financial and industrial hub, even if you’ll likely pay a little more to live there.
Texas takes a trio of projected increases in rent growth in 2014. Again, bustling business is the reason Houston apartments are hot items. Delta Associates reports that rents in the city have risen six percent and are likely to continue to rise. Still, oil, energy and NASA’s space program remain compelling draws to this super-cool city.
New York City 3.8%
We’re spreading the news. There’s only so much space on this island — and awesome apartments are in high demand. Vacancies are down in the Big Apple, though not quite as sharply as in several other cities around the nation. Rent-controlled units are allowed to increase in price by either 4% for a 1-year lease or 7.75% for a 2-year lease between October 2013 and September 2014. If you rent directly from the owner of a market-rate apartment, however, there is no limit to what might be charged. All of this is a small price to pay, of course, for the privilege of living in the city that never sleeps.
Photo credit: Shutterstock / Protasov AN