The Cost To Rent A Home Is Rising Fast

By Rudy Rudulph, November 26, 2016

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Single-family home rentals are consistently increasing across the country, according to RentRange, a housing industry data provider, which has identified the 25 metro areas where the average rent rose the most in the 12 months ending June 30. Of the top 25, two are in Alabama, led by Huntsville, AL., where single-family rents rose 14.4% over the 12-month span.

In these two cities home sale prices are also rising faster than the national average, making it harder for would be buyers to take the ownership plunge. As a result, more people are competing for a limited supply of single-family homes available for rent–which RentRange defines as having three bedrooms–pushing prices up and vacancy rates down.

Here are the markets where the cost to rent a home is rising fast.

#25 Montgomery, Ala.

  • Change in rent: 10.3%
  • Average gross yield: 14.89%

#8 Huntsville, Ala.

  • Change in rent: 14.4%
  • Average gross yield: 11.45%