November rent rises, pushing median prices above $2K again
New York and Florida saw the biggest increase in year-over-year price increases in November
Macro Trends Advisors LLC founding partner Mitch Roschelle weighs in on 'Varney & Co.,' noting that Americans are being forced to cut down on their discretionary spending amid soaring inflation.
Rent increased in November after two months of consecutive declines, pushing median rent prices above $2,000 again, according to a recent report.
Rent, which is owned by Redfin, reported that November rent rose 1.23% month over month. That is after September and October saw rents decrease by nearly 1% and 2.5% on a monthly basis, respectively, according to the data from Rent's December report.
November's median rent reached $2,007, which is up from a median of $1,983 the prior month. However, that is still below August's peak of $2,053, the data showed.
The uptick in prices was driven by a combination of price increases for two and three-bedroom apartments coupled with a rebound in prices for the most expensive apartments in Rent's inventory, according to the report.
An apartment for rent sign is posted in South Pasadena, California on Oct. 19, 2022. (Photo by Frederic J. Brown/AFP via Getty Images / Getty Images)
SURGING RENTS SQUEEZING MIDDLE-CLASS AMERICANS THE HARDEST, STUDY SHOWS
Meanwhile, November prices on an annual basis increased 7.45% the data showed. However, it was the smallest increase in the past three months, according to Rent.
HOW HOUSING IS FUELING RED-HOT INFLATION
"November's month-over-month increase is a reminder that despite short-term declines which signal a moderating market, for renters who sign yearly leases, prices are still elevated and those changes are higher than normal," according to the report.
A "For Rent" sign outside an apartment building in the East Village neighborhood of New York City on Tuesday, July 12, 2022. (Photo by Gabby Jones/Bloomberg via Getty Images / Getty Images)
States with the largest annual rent increases in November:
– New York +31.7%
– Florida +23%
– South Dakota +22.3%
– Arkansas +17%
– Nebraska +14.5%
– Utah +13.7%
– New Hampshire +13.4%
– Delaware +13.1%
– Kentucky +12.9%
– Tennessee +12.8%
States that saw annual rent decreases in November:
GET FOX BUSINESS ON THE GO BY CLICKING HERE
– Nevada -3.8%
– Maryland -1.3%
– Idaho -1.2%
– Georgia -1.2 %
– Virginia -0.1%