Rents Down in 2016 Forecast
Zillow Rent Forecast sees rents to slow, shifting to low gear in all the 12 months of 2016 that will include even well-performing markets in the previous years.
For renters though, Zillow predicts a flat line this year as well, a market movement that is expected from a meager 1.1 % rent increase.
Back in 2015, rents shoot up over the charts well enough to go beyond the average income of most tenants and renters which then made rent affordability one of the most volatile issues then. This is dominantly obvious in rising metropolitan areas such as San Francisco where rent appreciation rose more than two digits or exactly 12.5 %. This will most likely not be an issue in 2016 where rent increases are performing only half as quickly compared to 2015.
Issues on high rent rates though will not go away. However, recently developed multifamily residential projects will luckily discourage even higher prices according to Zillow Rent Forecast.
This means 2016 will be a friendly years for renters across the country where they can enjoy brief financial relief over stable costs of rent. It's a timely opportunity after all the dramatic and prolific rent increase during the past previous year.s
You can go visit Zillow Research's website for more details. In parting, below are the key market performance forecast for 2016.
Austin, TX & Sacramento, CA - 3.4
Buffalo, NY - 7.4
Denver, CO - 4
Los Angeles, CA - 2.8
Louisville, KY - 3.2
Miami-Fort Lauderdale, FL - 3.5
Portland, OR - 3.8
San Jose, CA - 7.8%
San Francisco, CA - 5.9
Seattle, WA - 4.5
2016 Residential Rental Outlook