New report says Reno is one of the top three cities in the United States with fastest apartment rents increase in January.
According to Reno-Gazette Journal, a national report from Adobo, an apartment search company, shows a 12.3 percent increase in apartment rents in Reno last month. It now costs $749 to rent a one-bedroom apartment in the city. Reno, Nevada is trailing behind Milwaukee, Wisconsin at No. 1, and Orlando, Florida at No. 2.
The situation in the rental market in Reno mirrors what other cities in the country are experiencing in relation to home affordability issues. Because owning a home becomes nearly impossible for young adults, they resort to renting, which consequently increases demand and rental prices.
Other factors affecting such increase include job-related relocation and retirement. Reno has become a popular destination for California retirees, as per Reno-Gazette Journal. This creates demand for new homes which contribute to high house prices particularly with the low housing inventory.
"Some industry experts have suggested that landlords are feeling pressured because of increased demand for units while inventory is low," said Michael Taus, vice president of growth for Abodo. "It makes sense for landlords to continue to raise pricing on their rental units, especially in markets with tighter inventory."
On a national level, JLL's global market report reveals a 4.7 percent year-on-year increase in rental prices in the U.S. As per OPP Today, this marks the fastest rate of increase in seven years.
Further to JLL report, 13 markets have seen over 5 percent year-on-year increase in rental rates, mostly in the western and southeast regions.
According to Adobo, the drivers of this rental growth include a 2.7 million rise in jobs created in the U.S. last year, a decline in homeownership to 63.8 percent, student debts and higher costs of new rental properties.
