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Appreciation heated up on rentals this spring, with the May median monthly rent totaling $1,440, an increase of 2.1 percent year-over-year, according to the May Zillow® Real Estate Market Report. Last May, the increase in median rent was 0.7 percent.

“Over the past two years, rent growth slowed across the country as new apartments hit the market and renters with the financial means to do so increasingly became homeowners,” says Aaron Terrazas, senior economist at Zillow. “The slowdown in rent growth was most prominent in the markets that moved most quickly to add units—either because it was easy to build or because of local demands—but the ever-swinging pendulum is again on the move. This spring, rent appreciation has perked back up nationwide, though it remains well within a long-term sustainable range. The ebb and flow of supply and demand is following slightly different timeliness in different markets, but over the past two years, we have seen similar trends in markets from the Southeast to the Northwest.”

Appreciation on homes was 8.1 percent year-over-year, at a median value of $216,000, according to the report.

For more information, please visit www.zillow.com.

For the latest real estate news and trends, bookmark RISMedia.com.

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