A recent report revealed that the Washington, DC, metropolitan area has had one of the highest rent hikes in the nation. Bloomberg Business week assessed data from Axiometrics, a company that measures performance in the rental apartment sector, and came up with a list of the top 25 American cities where rents have increased substantially in 2010.
The Washington, DC, Arlington and Alexandria region showed an average monthly rent of $1,473, up 7 percent from a year ago. The reason for the spike has to do with the fact that there is low unemployment, but high demand in that region. Vacancies move fast.
Of the 88 metropolitan areas that Axiometrics surveyed, the only ones where rents decreased were Las Vegas, Nevada, and Cape Coral-Fort Myers, Florida. Forecasters have predicted that rents in those areas may swell in 2011, however.
In this economy where people have lost their homes and had to resort to renting, it is not good news for folks in the DC metro area to know that the rental prices are on the rise and increasing.
President of the Dallas-based AXIOMetrics told Busineness week that the increase has to do a shortage caused by people once living with roommates, family and friends, that are now out to find homes of their own. Further, he said that the uncertainty about the economy are stalling people from trying to invest in real estate and buy houses.