Here’s some good news for renters: the Zillow Rent Forecast for December projects a big slowdown in rents over the next 12 months. Nationally, Zillow expects rents to flatten, rising just 1.1 percent in 2016.
Rents climbed through the roof in 2015, outpacing incomes and making affordability an issue for renters all over the country - and especially in fast-growing metros. The San Francisco metro saw a double-digit pace of annual rent appreciation in 2015 - 12.5 percent in December. Zillow expects rents to grow half as fast in 2016.
Rental affordability problems are not going away, but Zillow’s report shows that new multifamily housing projects are making a dent in high demand for rentals.
"The slowdown in rental appreciation will provide some relief for renters who've been seeing their rents rise dramatically every single year for the past few years,” said Zillow Chief Economist Svenja Gudell. “However, the situation remains tough on the ground: rents are still rising, and renters are struggling to keep up."
Here’s a look at the housing markets where Zillow projects rents will rise the most in 2016:
- San Jose, CA – 7.8%
- Buffalo, NY – 7.4%
- San Francisco, CA – 5.9%
- Seattle, WA – 4.5%
- Denver, CO – 4%
- Portland, OR – 3.8%
- Miami-Fort Lauderdale, FL – 3.5%
- Austin, TX & Sacramento, CA – 3.4%
- Louisville, KY – 3.2%
- Los Angeles, CA – 2.8%
via Zillow Porchlight | Real Estate News, Advice and Inspiration http://ift.tt/1PIgCmA
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