Courtesy of our friends at ABODO, we are back with our monthly multifamily update! Rent has been somewhat volatile earlier this year, but we’re seeing that in September, it has become more static. Cities with the top highest rents in September include San Francisco, New York City, San Jose, Boston, and Washington D.C.
Changes in Rent
This month, the national median rent actually hit its peak this year, sitting at $1,081. The national rent has only increased by 0.2% since January, which is really only a $2 increase. As shown in the graph below, the national median rent was at its lowest back in March and April. Today, however, rent is back to where it was at the beginning of this year. The greatest hikes we saw this month includes Cleveland at 12.8%, Santa Ana at 8.5%, and Colorado Springs at 6.8%. On the other hand, the greatest decreases are Glendale at -9.5%, Houston at -6.5%, and St. Paul at -5.2%. Unlike earlier this summer, Philadelphia fell off the list of greatest increases in rent. It seem like it has become more stabilized since a couple months ago. Overall, rent no longer seems unsteady.
Impact of Hurricane Harvey
Houston on the list of greatest decreases does not come as a surprise since it recently suffered a disaster, Hurricane Harvey. People are saying that this unfortunate disaster is one of the costliest in history. Because homes are destroyed and supply is spiraling down, the storm has significantly impacted the housing and real estate markets.
Before the storm, Houston was doing pretty well in the home-building market. Now, we must face the aftermath. The storm devastated about 75,000 homes. Unfortunately, not many in Texas have flood insurance. Analysts have projected about $190 million in total losses. Businesses must deal with up to $75 billion in damages, while homeowners are suffering up to $108 billion. We can only imagine how the market in the Houston metro area will be in the next year.
The storm may have been a short-term event, but Texas will take a long time to recover.