Rent Prices Soaring in Smaller Cities

Smaller cities are beginning to see rental rates rising faster than even some of the hottest U.S. markets.  Cities such as Denver, Kansas City, Nashville, Portland, and Charlotte have shown higher rent appreciation over the past year than the national average of 4.9%.  

Rental demand is being driven by improved employment, which has allowed new households to take shape again.  More and more young adults are joining the workforce and moving out of their parent’s home.  This trend has left smaller markets with more demand for rentals than the actual supply, allowing owners to bump up rents.  Another trend taking shape in the rental market is that young Americans are renting for longer periods of time than in previous years. Higher rents, coupled with lower income have stalled many renters from saving up for a down payment.  

According to Zillow, rents have grown twice as fast as wages since 2000.  This has some economists worried that the rental market is acting as an obstacle to home buying.  As rents continue to rise, the amount of for-sale listings will drop.  This can be seen in Nashville and Kansas City, which have seen for-sale listings decrease by 20% and 9% respectively.  This shortage of inventory will inevitably lead to higher home prices.  Although it may be cheaper in the long run for young Americans to own a home, increasing rents are keeping them in place for the time being.      

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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