Most figures show rents going one way -- up
Renters beware and landlords rejoice: Monthly rents keep going up.
An analysis of higher-end apartments in the Baltimore region shows average effective rents -- what tenants actually pay after factoring in concessions -- are up by nearly 6 percent compared with the middle of last year. Separate reports also show significant gains.
The one type of rental that doesn't seem to be doing so well for owners? Houses.
The report on higher-end apartments by real estate information firm Delta Associates focuses on the so-called "Class A" category, newer complexes that come with amenities. Delta says the average effective rent for such apartments in the Baltimore metro area is about $1,450 a month, up 5.7 percent from a year ago.
Here's the breakdown by area:
In Anne Arundel and Howard counties, rents rose almost 4 percent, Delta says. In suburban apartment complexes north of the city, rents jumped 7 percent.
Downtown Baltimore rents rose almost 5 percent, while the Fells Point/Inner Harbor area posted a 7 percent gain, Delta reported.
Some of that gain is about fewer concessions, such as a month's free rent. The value of concessions shrunk by nearly half over the year, Delta says.
The company expects a "modest pace" of rent growth over the next two years because developers are jumping on the apartment bandwagon. About 4,100 new units are planned for delivery in the next three years in the region, up by more than a third from the mid-2010 pipeline.
So what about the broader rental market? Axiometrics puts the average effective rent at about $1,130 in the Baltimore metro area and says that's up 3.2 percent just in the first five months of the year alone, same as the national average.
Cazoodle, a rental search engine, tracks the average monthly rent for apartments in Baltimore -- just the city, in this case -- and says that rose 5.5 percent in the first half of the year vs. the same stretch in 2010.
But Cazoodle's statistics suggest that houses for rent aren't experiencing the same trend. Average monthly rent for those properties dropped 2.5 percent, the company says.
Presumably a change in the mix of what's up for rent could explain some of that. More smaller rowhomes and less expansive places, say. But there are an awful lot of can't-sell homeowners who are trying to wait out the market by renting out their property, so competition could be a factor.
What are you seeing out there?