Spike in rental prices, trend of high prices could continue

DELMARVA– A new report said rent in the Unites States has spiked to a record high in April. That’s according to Realtor.com. The national median rent went up 16.7% from a year ago.

Local realtor Brandon Brittingham, with the Maryland and Delaware Group of Long and Foster, said what we are seeing with rental prices is similar to what we’re seeing in the housing market. There’s demand and not enough supply, especially on the Eastern Shore.

“You can’t just go and create inventory,” Brittingham said. “So, one of the things that have kind of changed, you know in the last kind of recession we had in and afterwards some people became property owners from an investment standpoint.”

Other contributing factors to the high prices, are the rise in labor costs and materials. While this is happening, Brittingham said we’re also seeing people make more money.

“So, they can afford it; but when you have a huge supply issue and a huge demand that supply versus demand it’s just going to continue to push the prices up, and that’s what we are seeing,” Brittingham said.

Brittingham said right now they’ve seen your traditional $1200 a month rental go up to $1,400 or $1,500. They have also seen the $1,400 or $1,500 go to $2,000. He thinks this trend of rising prices is expected to continue.

Brittingham said if you are in the position to and it fits your lifestyle, he does recommend buying a house rather than renting. He said there is a good chance your mortgage payment is going to be less than rent. Also, you’re creating equity on the property. Brittingham said if renting is best for you, you should do your research and get into something that fits your budget.

Categories: Delaware, Local News, Maryland