Rent Rising Faster Than Home Prices In Most Markets

The most recent results from Trulia’s Price Monitor show asking prices on for-sale homes rose for the fourth time in five months in June. Prices increased 0.3 percent month-over-month, after staying relatively flat in May. Year-over-year, prices were up 0.3 percent and, excluding foreclosures, home values rose 1.7 percent. Nearly half of the nation’s largest metropolitan areas saw price increases over last year and 84 out of 100 experienced increases over the previous quarter. At the same time, Trulia’s Rent Monitor found rent increases outpacing asking-price gains in 22 of the 25 largest rental markets. Rental prices were 5.4 percent higher in June than they were a year earlier. Rising rents are a key factor in the housing market’s recovery. Increasing rental costs may make homeownership more attractive to prospective buyers, especially since mortgage rates are at all-time lows and affordability is higher than its been in decades. More here, here, and here.

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