Buzz
Zillow predicts that rent prices will rise by approximately one percent on average this year, though the actual increase will vary significantly by location. In some cities, rents could spike by more than one percent, while in others, tenants may enjoy more affordable rents.
Zillow's Chief Economist suggests that rent prices won’t see the same rapid increase as in previous years. In the New York City metro area, prices are projected to climb by just 0.7 percent, lower than the national average. However, Los Angeles rents are expected to rise by 2.8 percent, while Seattle could see a hefty 4.5 percent increase. On the other hand, some cities, like Chicago, will experience a decrease in rent prices, with a 1.4 percent drop.
Here are a few other metro areas included in Zillow’s forecast:
Austin, TX: 3.4%
Baltimore, MD: -0.7%
San Francisco, CA: 5.9%
Phoenix, AZ: 1.4%
Atlanta, GA: 0.5%
Boston, MA: 2.7%
Houston, TX: 2.5%
Charlotte, NC: 2.4%
Portland, OR: 3.8%
Zillow states that their projections are based on both recent and historical rental data, utilizing ARIMA forecasting models. You can explore their methodology here and follow the link below for further details. For a complete list of cities, check the link below as well.
Photo credit: Quinn Dombrowski.
