Rent prices are set to increase for the holiday season after taking a slight breather in October and November.
Rent prices increased 0.57% in December, or by about $6 for one-bedroom apartments, according to the National Apartment Report – U.S. Rent Trends in December 2018 from ABODO.
The charts below show that for both one- and two-bedroom apartments, rents began increasing in June 2018. Rent prices then dropped again in October and November before increasing again in December – just in time for the holidays.
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But in some areas, the increases were much higher. Jacksonville, Florida saw the highest increase with an increase of 12.6% or about $102 for a one-bedroom apartment. Nashville came in second with an increase of 10.4%, followed by Savannah, Georgia at 9.5% and Boulder, Colorado at 7.3%.
On the other hand, some cities actually saw a drop in their rent prices. Columbus, Ohio, saw the greatest drop at 9.2% or about $101 for a one-bedroom apartment, followed by Rochester, New York, with a drop of 9%, Bakersfield, California, at 5.7% and Athens, Georgia at 5.4%.
The map below shows the cities with the greatest increases and drops in rent in December:
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But this could be the last increase for the winter as ABODO outlined weak economic factors such as a weaker stock market and low gas prices could halt rent hikes for now.
“The stock market also looks weak, and that may temporarily halt the Fed’s string of interest rate increases,” the report stated. “With a possibly weaker economy, less threat of inflation and stable interest rates, we’re just not feeling much rent movement moving into the winter months. We’ll also see if what seems like an early winter will put a damper on January rents.”