Rents in Raleigh are up 3.6 percent over the past year, the 6th-fastest growth rate among the nation’s large cities, a new study from Apartment List says. For comparison, the national rent index grew by just 1.5 percent over the past year.
For even more historical perspective, rents in Raleigh have risen by 17.4 percent since 2014, outpacing the national average of 12.7 percent, the study says.
But Raleigh’s median rental rate is still a relative bargain. The median rent for a two-bedroom apartment in the City of Oaks is currently $1,159, compared to the national average of $1,855.
This is the seventh straight month that the city has seen rent increases, after a decline in October of last year. Raleigh’s year-over-year rent growth is also above North Carolina’s average of 2.8 percent.
Throughout the past year, rent increases have been occurring not just in Raleigh, but across the entire state. Of the largest 10 cities that Apartment List has data for in North Carolina, all of them have seen prices rise.
Cary is the most expensive of all North Carolina’s major cities, with a median two-bedroom rent of $1,280. Of the 10 largest North Carolina cities that the report has data for, all have seen rents rise year-over-year, with Wilmington experiencing the fastest growth (up 4.7 percent).
The Apartment List report revealed Henderson, Nevada, had the highest year-over-year rent growth in the U.S., with an increase of 4.5 percent – nearly three times the national rate. Another North Carolina metro, Greensboro, ranked just behind Raleigh on the national list, with a rental rate growth of just under 3 percent. National rankings are based on cities with a population of at least 250,000.
Apartment List uses median rent statistics from the U.S. Census Bureau, then extrapolates them forward to the current month using a growth rate calculated from its listing data. The report uses a same-unit analysis similar to Case-Shiller’s approach, comparing only units that are available across both time periods to provide a picture of rent growth in cities across the country.
By Cameron Snipes Associate Editor, Triangle Business Journal