With home prices falling and the inventory building, people seem scared to purchase homes. But people have to live somewhere. So it’s not surprising that more people are renting apartments, pushing rental rates higher. In Atlanta, however, we’re not seeing as much of an increase in rents as the rest of the nation.
Commercial real estate research firm REIS predicts that rents will rise an average of 3.4 percent in 2011. But in Atlanta, rents are expected to rise just 2.0 percent, which puts us in the category for smallest increases.
While that may be good for anyone paying a rent check, it’s not a bright spot for the overall economic outlook. Higher rents may eventually turn many tenants into buyers, since buying a home will seem like a bargain compared with sending a monthly check to a landlord.
Here’s a list U.S. News compiled of the biggest and smallest movers:
Biggest increases:
| Metro area | Asking rent | Annual increase |
|---|---|---|
| San Jose, Calif. | $1,646 | 7.5% |
| District of Columbia | $1,528 | 5.9% |
| Seattle | $1,094 | 5.7% |
| New York | $3,017 | 5.2% |
| Houston | $828 | 5.2% |
| Orange County, Calif. | $1,590 | 4.9% |
| Fort Worth | $756 | 4.8% |
| Portland | $877 | 4.6% |
| Tucson | $683 | 4.3% |
| Greenville, S.C. | $672 | 4.3% |
Smallest increases:
| Metro area | Asking rent | Annual increase |
|---|---|---|
| Las Vegas | $811 | 0.9% |
| Wichita | $523 | 1.2% |
| Jacksonville | $806 | 1.2% |
| Orlando | $878 | 1.3% |
| Syracuse | $711 | 1.6% |
| Los Angeles | $1,418 | 1.6% |
| Phoenix | $763 | 1.7% |
| Tulsa | $593 | 1.8% |
| Westchester County, N.Y. | $1,892 | 1.9% |
| Atlanta | $863 | 2.0% |
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