Rent Rising Faster Than Home Prices

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Over the past several months, home prices have been rising at an ever slower pace. And, though the majority of metropolitan areas are still experiencing price increases, those increases are becoming smaller as the housing market continues to stabilize. At the same time, the cost of renting has also been rising in markets all across the country. In fact, according to Trulia’s most recent Price and Rent Monitors, apartment rent was up nearly 7 percent year-over-year, with some cities seeing increases of up to 15 percent. Home prices, on the other hand, rose just 0.8 percent in September from the month before. And, though they are up 6.4 percent from last September, that’s a significant drop from the 10.4 percent gain registered in September 2013. In other words, though housing affordability has been affected by the price increases of the past few years, the rental market has also been experiencing sharp gains. And now, apartment rent increases are accelerating at a faster pace than the cost of a single-family home. More here.