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Some states' rents are nearly as unaffordable as California's

By Dieter Holger of ConsumerAffairs
October 4, 2024

Photo

Rent increases, spurredby limited housing and construction, are forcing people to move much more often in some states and cities.

An average of 6% of U.S. renters say they were forced to movein 2024because their landlord increased theirrent in the last six months, according toa survey by the U.S. Census Bureauconducted between August 20 and Sept. 16.

A dozen statesand 10 major cities recorded movesabove the national average, a ConsumerAffairs analysis finds.

Rent increases usually comedown to how many housing units are availableand under construction: Fewer homes and apartments means less competition and landlords cancharge higher rent.

Consumer News: Rent increases are forcing people to move in these cities and states

California, a state with the nation's highest population that has long suffered from poor housing availability and weakconstruction, topped the list with more than 10% of renters saying the cost of rentforcedthemmove to a cheaper place in the last six months.

But fivestates came close to California: New Hampshire (9.2%), Oregon (8.7%), Utah (8.6%), North Carolina (8.6%) and Florida (8.4%).

There's been a shortage in rental units in New Hampshire since shortly before the pandemic, andNew Hampshire Public Radio reportsthat climbing rent prices in the tight,expensive marketencouraged the creation of a new law that aims to cut extra costs from background checks, application fees and more.

The state with the lowest share of renters saying they had to move because of a rent increase was South Carolina (1.6%), followed by Wyoming (1.8%) and Louisiana (1.9%).

Rising costs have cooled in South Carolina since 2023, which may partlyexplain why fewerpeopleare saying they are being forced to move.

North Carolina's capital Raleigh was also the most competitive rental marketin the Southeast U.S. in2023, based on how long apartments were vacant, number of renters biddingand other factors, according to RentCafe.

But 10cities among 15 of the U.S.'s biggest metro areas were above the national average of renters saying they were forced to move.

Consumer News: Rent increases are forcing people to move in these cities and states

The city with the highestpercentage of renters saying a rent increase made themmove was Los Angeles at 13%, followed by Miami (12%) and Seattle (9%).

Los Angeles, like other major cities in recent years, has struggled with a housing shortage that has made rents unaffordable.

Nearly three out of fiverentersin Los Angeles were paying 30% or more of their incometo rent in 2023, according to the latest figures from the U.S. Census Bureau.

But there aresome signs of relief for the residents ofLos Angeles: The average rent for a one bedroom apartment in the city fell 3% to $1,868 in May from a year prior, which was a decline four times greater than the national average and represents the biggest drop in a California major city,Crosstown reports.

A big reason for the recent drop in Los Angelesis thatconstruction projects, delayed duringthe pandemic, are revving up and injecting an influx of housing.

On the other hand, Chicago, Philadelphia, New York and Washington D.C. were roughly tied with around 5% of renters saying they were forced to move because of a rent increase, but this came only slightly below the national average.



Photo Credit: Consumer Affairs News Department Images


Posted: 2024-10-04 10:18:15

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