Home buyers aren’t the only ones facing challenges, so are renters. According to a recent study by rent.com, the national average rental rate for an apartment increased by 22.1% from January 2021 to January 2022. Lehi saw an increase of 33% over the same period, with average rent increasing from $1,208 to $1,617.
Lehi’s average rental price has even surpassed Utah’s largest cities of Salt Lake ($1,478) and Provo ($1,530).
In the rent.com study, despite the rising prices, apartment occupancy is at an all-time high.
In December 2021, apartment occupancy rates across the U.S. hit the highest percentage on record at 97.5 percent. “I don’t think most people realize just how crazy that is,” Jay Parsons, RealPage’s deputy chief economist, said. The real estate industry generally considers 95-96 percent occupancy as full.
Renters are staying put and renewing their leases as the home buying market continues to struggle with low inventory.
Lehi continues to see a rising demographic of renters as the home ownership rate has slowly decreased over the last 10 years from a high of 87% in 2011 to 79% in 2021. The state of Utah has a 72% home ownership rate.
The following cities experienced the biggest increase nationwide in one-bedroom rent prices year over year:
Gilbert, AZ (+117.8%)
Long Beach, CA (+58.3%)
Cincinnati, OH (+51.8%)
Mesa, AZ (+42.1%)
Lexington, KY (+41.5%)