Rental Costs Are Up in St. Louis Region
Date Posted: April 5, 2015
Posted In: News,
From St. Louis Public Radio:
It’s getting increasingly difficult for renters to save money for their first home.
That’s according to a National Association of Realtors report released last month that found rental costs have outpaced wages in many cities. The study looked at 70 metropolitan areas from 2009 to 2014.
In St. Louis, rents went up about 10 percent during that period, while wages for 25-44 year-olds rose 9.5 percent, according the NAR study. Still, that was well below the leaps in rental costs experienced in New York, Seattle and San Jose, Calif. where rents rose by 50, 32, and 25 percent respectively, far outpacing wages.
NAR chief economist Lawrence Yun said when rents rise, it typically is a tipping point for well-qualified renters to consider home ownership. That isn’t happening right now.
“We have a situation where rents are rising too strongly and hence it could be eating into people’s savings,” Yun said. “So it’s hard to save for a down payment and that hinders the possibility of converting into ownership.”