March Rents Grew Dramatically In Chicago And These 4 Other Cities

Untitled design 2020 03 04T095449.392 1024x576

Untitled design 2020 03 04T095449.392 1024x576

Eighteen of the 50 largest U.S. metro areas experienced a rise in rents on an annual basis in March, particularly in the Northeast and Midwest where rental supply is limited, and homeownership is expensive.

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Renters have been in a better position than homebuyers lately due to the high cost of owning a home. However, in March, 18 out of the 50 largest metros saw an increase in rents compared to the previous year, according to Realtor.com.

Chicago recorded the highest rent increase in March 2024, with a 4.3 percent spike year over year, bringing the median monthly rent to $1,846, up by $76 from March 2023.

Other metros with significant rent increases in March included New York City, Kansas City, Boston, and Indianapolis. These areas are experiencing a lack of rental supply, driving up rental prices, according to Realtor.com economist Jiayi Xu.

The demand for rentals is also influenced by challenges in homeownership affordability in these markets. High housing prices, combined with increased mortgage rates, may lead people to postpone purchasing a home, increasing the demand for rentals.

Kansas City and Indianapolis are relatively affordable compared to Chicago and have lower unemployment rates, which also contribute to the demand for rentals and subsequent price increases.

The five metro areas that saw the largest rent increases in March 2024 were:
1. Chicago, Illinois
– Median rent in March: $1,846
– Increase year over year: 4.3 percent

2. New York, New York
– Median rent in March: $2,876
– Increase year over year: 3.8 percent

3. Kansas City, Missouri
– Median rent in March: $1,340
– Increase year over year: 3.4 percent

4. Boston, Massachusetts
– Median rent in March: $3,023
– Increase year over year: 3.3 percent

5. Indianapolis, Indiana
– Median rent in March: $1,297
– Increase year over year: 3.3 percent

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The rental market in the United States is experiencing growth in several major metro areas, particularly in the Northeast and Midwest regions where rental supply is limited and home ownership is costly. Renters are benefiting from the high cost of owning a home, with 18 of the 50 largest metros seeing an increase in rents in March 2024. Chicago had the highest rent increase of 4.3 percent year over year, followed by New York City, Kansas City, Boston, and Indianapolis. The lack of rental supply in these areas is driving up rents, along with challenges to home affordability and high housing prices. Cities like Kansas City and Indianapolis, which offer relatively affordable rents and strong labor markets, are also experiencing an increase in demand for rentals. Overall, the rental market continues to grow in response to various economic and market factors, making it a lucrative opportunity for investors and property managers.

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