In April, the average price of rent in the US was $1,827 per month, an analysis by Realtor.com showed. That's a 16.7% increase from 2021, continuing a troubling trend seen since the beginning of last year. If housing prices continue, the report found that the national average could reach $2,000 per month by August.
So what's causing this price spike? An unequal relationship between the number of available apartments and people looking to rent –– most of whom are would-be homebuyers who can't afford to buy a home in this market, Realtor.com's chief economist Danielle Hale told CNN.
"Renters are being left with few options but to meet higher rents and, in some cases, even offer above [the landlord's] asking price –– whether they can afford to or not," Hale said.
The report also showed that studio units –– which used to be the most affordable type of rental units –– continued to grow at a faster pace than larger units. That's the opposite of what was seen last year, especially in New York and Los Angeles, and Chicago where rent for studios increased 29%, 23%, and 22%, respectively.
Overall, the rate of price increases has slowed down since its peak in January. In March, the year-over increase was 17% –– which is still significantly high.
Miami saw the highest rent spikes in April with its median rent reaching $2,800 –– marking a 52% increase. Tampa, Las Vegas, and San Diego were also among the highest. Pittsburgh, Detroit, and Minneapolis had the smallest increases, the report showed.
"Rents are not only maxing out renters' housing budgets but are the biggest strain on their overall finances, even as inflation drives up expenses across the board," Hale said.