Zillow: Apartment Rents Gain Momentum

Apartment rents are gaining momentum and touching double-digit annual gains in hot markets, which could move some renters into the homeownership market, Zillow said in its Monthly Market Report.

Apartment rents rose dramatically in March, “beginning to make up ground after a slump that began this time last year,” Zillow said. the research firm’s Observed Rent Index rose to $1,721, up 0.9 percent over February and the largest monthly increase since 2014. March was the third consecutive monthly increase, bringing annual growth back above 1 percent for the first time since July.

“Rents have been softer since the beginning of the pandemic in many large markets and fell in the priciest ones–though Zillow research shows those savings were limited to the most expensive zip codes,” the report said. “In March, rents rose at an accelerated rate almost across the board, though the highest year-over-year growth is taking place in the Inland West and Sun Belt, along with some more affordable metros in the Midwest and Rust Belt.”