WASHINGTON (AP) – U.S. home rental prices climbed much faster than incomes in June. But there are signs of slowing momentum around major job hubs such as New York, Los Angeles and Washington.
Real estate data firm Zillow said Thursday that U.S. rental prices rose a seasonally adjusted 4.3 percent in June from a year ago. Rental prices have been increasing at double the pace of wage growth, causing renters to allot more of their income to housing and limiting their ability to save to buy a home.
The average hourly wage increased just 2 percent last month, according to the government.
“Rents are insanely unaffordable on a historical basis in the United States right now,” said Stan Humphries, chief economist at Zillow.
Rents continue to jump at double-digit rates in Denver, San Francisco and San Jose, California. But the monthly data suggests that several other major markets have either added enough new buildings to accommodate demand or pushed residents to their financial limits with previous price hikes.