Many metro areas, including Richmond, are seeing record rental price increases.
According to this recent report by NAR, many metro areas are seeing a record rise in the median price of their rental stock. Richmond is among the cities on their list with the highest percentage increase YOY.
Increases
The report by NAR collected data on rentals around the country and determined that they have reached their highest median rent in over two years. Furthermore, there has been a dramatic percentage increase in rent year over year.
Richmond, for example, currently has a median rent of $1,233/month; that is a YOY increase of 13.6%, according to NAR.
Effects
With mortgage interest rates still sitting quite low, it is easy to see how increasing rents could push even more new buyers into the market. They will be in for quite a search, however, as the housing shortage continues and the homebuying market continues to become more competitive. Renters-turned-buyers may see it as worthwhile to buy, though, as home price increases are generally agreed to be on a path to flattening but not backsliding.
