Indianapolis from White River State Park, Indianapolis, Indiana, USA
Henryk Sadura—Getty Images/All Canada Photos
By Christine DiGangi / Credit.com
February 9, 2016

It will come as a surprise to no one that rent prices in most of the country’s largest markets are expected to rise in 2016, according to a forecast from real estate data company Zillow. But there’s some good news in that forecast, even for people who live in some of the most expensive cities in the country: Rents won’t increase as much as they have been, Zillow predicts.

For example, in 2015, rents in San Francisco grew 12.5%, but this year, Zillow expects that growth rate to slow to 5.9%. Of course, that’s probably not too comforting to a population of renters that already lives in one of the most competitive, expensive markets in the country, especially since Zillow said people in San Francisco can expect to spend 40% of their income on rent in 2016.

West Coast rents are an extreme — Zillow data says the three most expensive cities for renters are all in California. At the same time, tenants throughout the U.S. can expect modest rent increases, with a projected annual growth rate of 1.1% in 2016, from a median monthly rent of $1,381 to $1,396. (Zillow forecasts its rental index figures using recent and historical rent trends.)

Read More: How Renting Can Impact Your Credit

And in some bigger cities, rents are poised to drop. They’re not necessarily the cheapest places to live, but they’re certainly not anywhere near the $3,699-per-month people can expect to pay in San Jose, Calif., this year. Out of the 35 largest metro areas in the country, nine cities will see rent price drops in 2016, Zillow predicts.

9. Detroit

December 2015 Median Monthly Rent: $1,132
Projected December 2016 Median Monthly Rent: $1,128
Change: -0.4%

8. Philadelphia

December 2015 Median Monthly Rent: $1,558
Projected December 2016 Median Monthly Rent: $1,550
Change: -0.5%

7. Cleveland

December 2015 Median Monthly Rent: $1,124
Projected December 2016 Median Monthly Rent: $1,117
Change: -0.6%

Read More: How to Get a Credit Card With Average Credit

5. St. Louis (tie)

December 2015 Median Monthly Rent: $1,123
Projected December 2016 Median Monthly Rent: $1,115
Change: -0.7%

5. Baltimore (tie)

December 2015 Median Monthly Rent: $1,714
Projected December 2016 Median Monthly Rent: $1,702
Change: -0.7%

4. Pittsburgh

December 2015 Median Monthly Rent: $1,090

Projected December 2016 Median Monthly Rent: $1,079

Change: -1%

Read More: The Truth About Credit Repair

3. Chicago

December 2015 Median Monthly Rent: $1,633

Projected December 2016 Median Monthly Rent: $1,611

Change: -1.4%

2. Las Vegas

December 2015 Median Monthly Rent: $1,212

Projected December 2016 Median Monthly Rent: $1,191

Change: -1.8%

1. Indianapolis

December 2015 Median Monthly Rent: $1,181

Projected December 2016 Median Monthly Rent: $1,138

Change: -3.6%

 

 

 

You May Like

EDIT POST