RENT CHANGES IN MAJOR METROS: MARCH 2021 VS MARCH 2022 The rental market in the U.S. is experiencing historic rental price fluctuations. To quantify some of these changes, Rentometer has selected and analyzed two- bedroom properties in ten neighborhoods of major metro areas.
METHODOLOGY
SUMMARY In the analysis, we look at how rent prices have changed year-over-year as well as the rent-to- buy ratios for these areas considering average property prices. On the next page we present the summary analysis of our findings for these neighborhoods.
• Our Neighborhood Analysis uses a six-month “Look Back” to establish an average baseline rent, considering rental data points six months back from March 1, 2021, and March 1, 2022.
• The average property price was determined by a sample of listing prices according to Redfin.com.
• The annual rent income was determined by annualizing the average monthly rent for two-bedroom rentals in the target metro areas.
• The price-to-rent ratio was determined by dividing the average property price by the average yearly rent income. According to Trulia’s interpretation, a score of 1-15 suggests conditions are better to buy, a score of 16-20 suggests conditions are typically better to rent than buy, and a score of 20 or more that it’s much better to rent.
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