Unfortunately, this isn't a bad dream. A new nationwide data released by Axiometrics revealed that rent is not just getting more expensive, it is shooting up at the fastest rate in years.
The company which tracks apartment rent across the US pointed out that the average annual rent increased by 4.7 percent in the last quarter of 2015 nationwide. By the end of the year, the average annual rent was at $1,244.
"Rent growth has been 4.7 percent or above for five straight quarters. Never in Axiometrics' 20 year-history has annual effective rent growth been at 4.7 percent or above for such a long period," they wrote.
The reasons for the dramatic rent increase are quite obvious. Recently, apartment supply was lower than the demand. This means, there are a lot of people competing to get the same aparment. Moreover, the nationwide occupancy in the last quarter was at 95 percent. The rate is the highest fourth quarter occupancy rate in 15 years. With 95 percent of US apartments already occupied, only 5 percent are currently on the market.
Because of the tight supply, landlords were given the leverage to increase their asking rental price. Although there is a current apartment boom, most of the new developments are high-end apartments that will not drive down rent prices when they open.
Rents in Portland and Oakland recorded as the fastest increases in the US. Average rents rose by 12 percent in Portland and 11.3 percent in Oakland. Among the top 50 markets in the country, only Oklahoma City experienced a fall in the last quarter of 2015 with a slight drop of 0.6 percent.
Unlike home prices, apartment rent was not affected by the recession. During the country's economic downturn, rents scarcely dipped and as a matter of fact, it persisted to increase annually. In 2010, rents across US increased by 2.3 percent and about 4 percent in the next two years. According to REIS, over the last 15 years, rents have been rising at an average rate of 2.7 percent per year.
