Rent in the US will go up in 2016 year

The cost of renting housing in the US, experts say, in 2016, will outpace the rate of inflation and increase on average by 3-5% across the country.

On December 16, the Federal Reserve System (FRS), as Forum wrote, increased interest rate on federal funds for the first time since 2006, which is a sign of the revival of the American economy after the Great Recession.

“We are already in an affordability crisis in the rental housing market, and it will not be resolved in 2016,” says Zillow lead economist Svenja Gudel.

The vacancy rate in the years following the 2008 financial crisis of the year began to decline sharply due to rising demand for housing. Accordingly, the price of rental housing has increased.

The good news for tenants is that rental growth in some cities, especially large ones, will slow down.

According to Devin O'Brien, head of strategic marketing for the Zumper platform, this will affect San Francisco, New York and Boston. At the same time, by inertia, the price of housing in the suburbs of these megalopolises may increase, where people usually look for alternative options in the rental market.

The specialist also expects a significant increase in housing prices in Miami, Dallas, Austin and Houston.

In addition, the rental cost may be affected by the growth in mortgage rates. The Fed’s decision to raise interest rates may delay American citizens in the rental market for a longer period.

The fact is that the increase in the monthly rent for an apartment will leave Americans less able to save money on a down payment on the purchase of their own real estate.