Across 40 U.S. states, monthly rent grew at a slower rate than housing prices between the first quarter of 2018 and today, according to an Apartment Guide report released Tuesday.
The rental platform identified Oregon, New York and Iowa as states with the widest gap between rent and housing values by analyzing data from the Federal Housing Finance Agency, with Oregon experiencing a 4 percent growth in home prices even as rental rates plummeted 17.92 percent.
In New York, home prices grew by 4.63 percent while rent fell 7.53 precent. In Iowa, home prices grew by 4.3 percent while rent prices fell 6.61 percent.
Courtesy of Apartment Guide
Nationwide, rent prices remained static on average while home prices grew by 5 percent.
“Of the top 25 states where housing prices increased the most, only three states (West Virginia, Maine and Missouri) had rent prices jump by a larger percentage,” the report states. “There were also 12 states with a more favorable renter gap than the national average, which stayed even for rental prices but rose more than 5 percent for housing prices.”
Overall, the report showed that states where it is increasingly expensive to buy property can often maintain affordable rent. Nonetheless, states such as West Virginia, Arkansas and Wyoming experienced both a large general drop in rent and home prices, with West Virginia seeing rent prices slump 22.24 percent and home prices fall 6.08 percent.
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