Year-Over-Year Rental Prices Accelerate

The national rental market is seeing a major year-over-year price increase with a quick acceleration in September, according to the CalculatedRisk Newsletter.

Rent measurements by Zillow, ApartmentList, and CoreLogic show different YoY rates, but all report a rapid increase in the third quarter of 2021 which will likely spill over into 2022 measures of inflation.

The Zillow measure is up 9.2% YoY in September, up from 8.4% YoY in August. And the ApartmentList measure is up 15.1% as of September, up from 12.5% in August. Both the Zillow measure (a repeat rent index), and ApartmentList are showing a sharp increase in rents. From Zillow:

“ZORI is a repeat-rent index that is weighted to the rental housing stock to ensure representativeness across the entire market, not just those homes currently listed for-rent.”

And from ApartmentList:

"At Apartment List, we estimate the median contract rent across new leases signed in a given market and month. To capture how rents change in a market over time, we estimate the expected price change that a rental unit should experience if it were to be leased today."

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