Zillow's Svenja Gudell reports that while rent growth is slowing down, that doesn't mean it's not still expected to grow.
According to the Zillow Rent Forecast, rents across the nation are forecast to appreciate 1.7% over the next year. The fast-growing markets (that will also add jobs) in Seattle, San Francisco, and San Jose are among the set that are predicted to grow most rapidly. In Seattle and Portland, rents are expected to appreciate the quickest over the next year, at 7.2% and 6% growth, respectively.
On a pure dollars and cents basis, the two Bay Area metro markets of San Jose and San Francisco, respectively, remain the most expensive large rental markets in the country, by far. Renters in and around San Jose should currently spend $3,517 per month on rent; in the San Francisco area, median rent runs $3,406 per month. Los Angeles was the next priciest rental metro in August, at $2,593 per month. Looking ahead a year, these multi-county areas will remain among the nation’s priciest. If rents rise as expected, by the end of next summer renters considering the typical apartment in San Francisco should expect to budget $3,573 per month. In San Jose and L.A., median rents are expected to rise to $3,677 and $2,718 per month, respectively.