Abodo, an apartment rental web site, compiled a report on rental rates around the country for the first six months of the year, and the results may not be good news for anyone:
The report found Houston had the highest average rent growth in the state and the third-highest in the nation.
Specifically, data showed Houston’s rents for a one-bedroom apartment during the six-month tracking period grew at a rate of almost four percent each month. Rental rates for two-bedroom apartments also increased across the city at just over two percent per month.
The survey further showed rental rates for a one-bedroom apartment went from an average of $951 in January to $1,191 in July; there was, additionally, a corresponding increase in the rates for two-bedroom apartments, from $1,233 in February to $1,402 in July.
This reveals Houston as home to the highest rental rates in the state, with average rent for a one-bedroom apartment in Houston at $1,053 per month, well over the $871 statewide average.
While rates for one-bedroom apartments across Texas increased during those first six months, the rate of increase was barely over one percent per month.
Despite the recent rent hikes, Houston remains a bargain compared to most of the country, as rental rates for a one-bedroom apartment in Houston are only slightly higher than the national average ($1,016).
The rates are also much lower than those found in other major cities; San Francisco, for example, placed highest in median rent for a one-bedroom apartment at $3,240, while New York came in second at $2,919.
Experts say future trends for rental rates in Houston will largely depend on two factors:
According to the U.S. Census Bureau, Harris County is the second-fastest growing county in the country. The influx of new residents, including thousands of immigrants, will keep demand for rental units high.
However, with a downturn in oil prices, many of those seeking jobs in the energy sector may be turned away from living in a town where fortunes are won or lost on the price of crude.