Rental rates across the country continue to rise sharply year-over-year, with Texas and the Pacific region seeing the highest increases, according to third quarter rental statistics released by the Real Property Management franchise, the nation’s leading property management organization, and RentRange, the nation’s leading provider of Rental Market Intelligence.
The companies found that during the third quarter of 2015, the average rental rates in the United States increased from $1,329 to $1,363, representing a 5.7 percent increase over the 2014 rate of $1,289, and a 2.5 percent increase since the second quarter. The data used rents on three-bedroom single-family homes only to insure comparability across markets.
“Rental increases typically are strongest during the summer months as renters – especially those with children -- avoid moving during the school year,” said Wally Charnoff, CEO of RentRange. “This summer was no exception.”
Rental rates rose in all 10 regions analyzed. Texas and the Pacific region showed the greatest rises, with 8.9 percent and 8.5 percent year-over-year increases, respectively. The Midwest and mid-Atlantic areas experienced the smallest rises with 4.3 percent and 3.7 percent increases, respectively.
Rental Rates and Year-over-Year Increases of 10 U.S. Regions through the Third Quarter 2015
|REGION||Y-o-Y Change in 3BR rent||Median 3 BR rent ($)|
“The results of this quarter’s report provide additional evidence that rental properties are becoming more prevalent and are in strong demand,” said Don Lawby, President of Property Management Business Solutions, LLC, the franchisor of Real Property Management. “Based on several economic indicators that contribute to this trend, we expect strong growth in rental prices to continue nationally through the remainder of 2015.”
Steady reductions in vacancy rates – the percentage of homes considered unoccupied across the country – have accompanied rental rate increases. The national rate fell to 5.31 percent through September 30, down .24 percentage points from 2014. The Southwest region had the most stable vacancy rate at 4.18 percent, one of the lowest in the country.
The report also analyzed rental saturation rates across the country. The number of single family homes that are now rentals continues to rise and is now at 24.98 percent of all single family homes, compared to 23.6 percent last year.
As leaders in the rental housing industry, the Real Property Management franchise and RentRange have an ongoing strategic business relationship. Real Property Management offices rely on RentRange’s proprietary rental housing data to provide landlord customers with accurate, current information about local rental properties and rental markets.