The cost of shelter in the United States has risen again, according to Zumper National Rental Report.
The national average price for one-bedroom rentals increased 1.5% to $1,526, while the national average price for two-bedroom rentals increased 1.9% to $1,900 in June, according to the report.
“The national index that continues this monthly growth trend, together with the current persistent inflation, suggests that housing will continue to be a challenge for the Federal Reserve’s efforts to reduce interest rates this year”, reads the report.
Annually, national one- and two-bedroom rental prices increase by 1.5% and 2.1%, respectively.
While national rates are “currently quite low,” they have not offset the large spikes in incomes that have occurred across the country in recent years, the report noted.
“National prices for one and two bedrooms are still between $300 and $400 more expensive than they were 4 years ago,” the report says.
New York’s rental market continues to experience the fastest rent growth. Four cities in the Empire State have double-digit annual rental rate increases.
Rental prices in Syracuse rose 29% last year, making it the fastest-growing rental market in the country, while rents rose more than 10% in Buffalo, Rochester and New York.
Rising rent prices in these cities are, in part, driven by increased demand.
In New York City, for example, the housing vacancy rate fell to 1.4% – a significant drop from the city’s rate two years ago, which was 4.5%, according to the report.
And housing demand in these four cities has spread to surrounding markets such as Newark, NJ, and New Haven, Connecticut.
Both cities have seen rental prices increase more than 7% since last June, according to the report.
This story originally appeared on thehill.com read the full story
