Rents are skyrocketing: Realtors to give up on rental properties

Rents for the average rental property in the United States have increased in the past year and are expected to rise again by 10% by the end of the decade, according to a report from the Realtor Federation. 

The report, released Tuesday, was based on a survey of 1,800 rental properties in the country.

The average price per month for a one-bedroom apartment in the nation’s largest metropolitan area, Chicago, rose from $1,500 to $3,500 in the six months to June, according the survey. 

But rental property values in the Midwest, a region with an estimated 40% of U.S. housing market growth, are falling and are down 5% from the same period last year. 

“Rent growth is not sustainable,” said John Vigliotti, president and CEO of the RealtyTrac brokerage.

“There is a huge difference between a one year rental, a one month rental and a two year rental.” 

The U.N. agency said its survey found that rents for the country’s poorest households have declined for three consecutive quarters and are now at their lowest point since 2007. 

There are currently 1.9 million households in the U.P. who are either on fixed incomes or receiving a housing benefit payment, the U-UNF said. 

Rents in the wealthiest 10% of households have increased 10% since last year and now exceed those of the middle class, it said.

Rents for homes in the richest 10% have increased 20% over the same time period. 

According to the survey, only 1 in 10 households with income of $75,000 or more receive housing assistance, the United Nations agency said.

The median income for families making more than $200,000 has grown by 6.4% since 2009. 

Realtors also noted that the housing market is improving but still lags behind those of developed countries, and the United Kingdom has recently begun cutting its housing support package. 

Meanwhile, the number of people moving into rental properties is also at a record high, according an analysis of U-TECH data from brokerage firm Trulia.

The number of homes in rental units in the top five U.K. regions grew by more than 10,000 last year to a record of nearly 19,000. 

Some U.H.S.-based developers are looking at building new rental properties, including an office tower that is scheduled to open in 2019 in downtown Houston, according in a statement. 

As of June, developers had received 1,749 applications for new housing, a new record, according To Build, a research and advisory firm.

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