Soaring rental prices in DC, New York, Los Angeles and other major markets are forcing tough choices

The average cost of a bedroom in August is $1,769 nationwide, up 39% from 2021, Rent.com reported.
Two-bedroom rentals averaged $2,105 nationally this month, a 38% increase from 2021.

By Stacy M. BrownNNPA Newswire Senior National Correspondent

Monica Scantlebury lived in DC for a decade before taking ownership and moving to the Big Apple, where she has resided for about 11 years.

So, as Scantlebury noted, she’s no stranger to high rents.
A high school teacher for 15 years, Scantlebury has decided to leave the teaching profession and New York at the end of the month.

“It’s not sustainable,” she said of the ever-increasing rents.
The median one-bedroom rent in New York is about $4,000 a month, and Scantlebury said landlords require income 40 times the rent for approval of applications.

“The average income needed is $160,000,” Scantlebury said. “If a teacher is a single person, that’s not even feasible, even in charter schools which typically pay 10% more.

“I have 15 years of experience, two master’s degrees, and I max out at $106,000 at a charter school. However, even with my husband’s salary, we’re not at $160,000 or anywhere near that considering he’s in the dance industry.
The average cost of a bedroom in August is $1,769 nationwide, a 39% increase from 2021, Rent.com reported.

Two-bedroom rentals averaged $2,105 nationally this month, a 38% increase from 2021.
“If you’re interested in a single bed and a single bathroom, the average for these apartments is usually around $2,000 to $2,100 here in Fairfax, Va,” said Dustin Fox, owner and realtor of fox teams Real Estate Brokers in Virginia.

“For every additional bedroom, the rent increases by an average of $500,” Fox said. “This information varies due to different neighborhoods and amenities. The numbers go up and down, but don’t really exceed much of the budget. »

Fox said rental models revealed current prices are comparatively lower, but fell from $3,000 to $35,000 in Fairfax last year.

“With the current swings in interest rates and home prices, it’s becoming difficult for new buyers to move into their homes,” Fox continued.

“The only recommendation that can be made to these people is to limit their spending within strict limits and to continue saving until the market cools.”
Nate Johnson, real estate investment expert and product manager at the leading real estate search site NeighborWhooffered recommendations to first-time buyers and current owners.

“My recommendation for first-time buyers is to wait and continue to save aggressively,” Johnson wrote in an email.

“For some people, it may make sense to move in with friends and family to save money over the next year. If their job allows for remote working, it might also be a good idea to move from a high-cost area to a lower-cost area that might be farther from the workplace.

Johnson said he’s seen some negotiate slightly lower rents with their landlord by locking in longer contract terms or putting more money on deposit.
“Another possible strategy for some renters is to rent additional rooms on short-term rental sites like Airbnb or VRBO to help cover rent,” he said.

He added that a current homeowner is unlikely to get as low a mortgage as they already have.

“My recommendation for the current owners is to stay where they are if possible,” Johnson insisted.

Joshua Haley, the founder of Clever movesaid there are many ways to make housing more affordable.

“One is to increase the availability of units at lower rates,” Haley said.
“Another is to incentivize developers to build more affordable housing. A third solution consists in facilitating access to credit for the purchase of a home. Finally, the increase in the supply of affordable housing will contribute to lowering the cost of rents in large cities.

Comments are closed.