Two Cali cities have seen rent go up hundreds of dollars from this time last year
It’s expensive to live in California, but two cities stand out as having some of the biggest jumps in rent in the last year.
Marina del Ray — a neighborhood in Los Angeles — saw a year-over-year change of $441, according to a study from GoBankingRates. That’s 16 percent higher than 2016. In contrast, Bronxville, New York saw almost a $500 drop in rent during the same time. Check out our map of the biggest changes…
“As the U.S. continues its long recovery from the Great Recession, home prices have increased across the country,” GoBankingRates says. “If you can’t afford to buy a home, then renting is the next best option.”
Along with Marina del Ray, Corona, California saw a jump in rent from this time last year, going up $274. But not all California cities are on the rise. Two — San Francisco and Walnut Creek — saw some of the biggest dips, dropping around $225 for both.
Jumps and dips across the country
It’s not just California: There were big changes elsewhere, too. Delray Beach, Florida, had rent go up an average of $205. The city has seen rent go up consistently since 2012 but from 2016 to 2017 it went up 16 percent.
In East Orange, New Jersey — one of the hottest markets in the state — rent is up 20 percent year over year. It doesn’t help that with few home-buying options and high demand, East Orange’s increasing home costs make rent go up as well.
Aside from Marina del Ray and Corona, other California cities saw spikes in rent this year, including El Cajon (up $208), Chula Vista ($220), and Foster City ($227).
Rent is also decreasing surprising amounts in some areas. New York City is known for sky-high rentals, but three other cities in the state have seen a drop this year. Along with Bronxville going down about $500 over the course of a year, Long Beach saw prices go down an average of $88 — a 4.5 percent drop from GoBankingRates’ figures from 2016. Buffalo also saw rents drop $355 from this time last year.
Aside from San Francisco and Walnut Creek, there were other California cities that saw a drop this year, including Newport Beach (down $203), West Hollywood ($145), and Oakland ($100). Texas and Connecticut also had multiple cities with rent drops from 2016 to 2017.
Can you afford to buy?
While there are some cities across the country that are experiencing rent declines, many places around the country are seeing a spike in rent, mostly due to a spike in mortgages. With a hot housing market and low inventory, the people that need to buy cheap homes can’t actually afford them.
This means millennials will continue to live at home or move back home after college because it’s economically feasible. Collectively, potential home-buyers will continue to bypass buying a home because of down payment struggles, an increase in mortgage payments, and overall affordability due to other expenses, like utilities, car payments, and student loans.
This means that even as sellers are looking to put their homes on the market, they have a slim chance of buying a home they want because of the lack of options.
Article last modified on August 7, 2017. Published by Debt.com, LLC .