Published by FOX Business | August 23, 2022
Rent prices across the country have been taking a significant bite out of consumer budgets with some renters getting hit particularly hard over the past year.
Pamela Liebman, president and CEO of The Corcoran Group, discussed the real estate market on Tuesday, stressing that the sticker shock for rents have been “really crazy.”
She noted that some rents increased by 50% compared to the same time last year.
“There have been 12 months of consistently increasing rental prices so every month it’s going up,” the real estate expert told “Mornings with Maria” on Tuesday, noting that the trend is “starting to slow a little bit.”
Liebman noted that Brooklyn was experiencing “its highest rents ever” as well as other parts of New York City. She also noted that rent prices in Miami Beach are “out of control,” just as other parts of Florida are.
“So what does that do? It pushes people to other surrounding areas,” she noted.
Rent – a real estate website owned by the brokerage Redfin – analyzed which U.S. cities were experiencing the most expensive rental prices based on increases in the area from June 2021 to June 2022.
What Rent researcher Jon Leckie has discovered was that there have been particularly “steep price increases in peripheral markets across the country.”
For instance, although Manhattan has been grabbing headlines for its eye-popping rent costs, Jersey City, New Jersey, sitting right across the Hudson from the Big Apple, is considered the most expensive city for renters, according to Rent data obtained by FOX Business.
In Jersey City, the average monthly rent surged from $3,308 in June 2021 to $5,500 in June 2022, according to Rent data obtained by FOX Business. That’s an increase of 66.25% in a one-year period.
Another example is Freemont, California. Rents in Freemont surged 45% year-over-year, one of the largest increases tracked by Rent. In comparison, rents in San Francisco and San Jose increased 7.5% and 25%, respectively.
“You can work from home in so many instances, you have a lot of flexibility; you don’t have to live in these cities,” Liebman said on Tuesday, noting why many people have moved to areas outside major cities.
She stressed that while higher mortgage rates have been driving people to rent, there are simply not enough rentals.
